cash out refinance for multi-unit investment property - Texas?

5 Replies

If I have duplex that I originally put 25% into, and after a year or even several years my equity has grown - are there options available that I would be able to cash out refinance to take some of the equity out to say, re-invest in another property? I am in Texas.

Yes there are in STl thy will typically allow you to refi at 70%LTV. I would call a couple of local banks and find a good mortgage broker.  Also go to your local REI club and ask for referrals or professionals that are there. 

Hello Audrey,

Getting cash out through conventional lending is tough in TX. I know that Freddie will do 1 unit up to 80% LTV which doesn't really help you.

You would need to get a portfolio loan, private loan or HML loan. If you get the cash out this way you could do a rate and term refinance through all conventional channels up to 75% LTV.

I hope this helps and have a great day.

@Audrey VanDeWalle Tsogbe

There are options as Shaun stated, but it might not be through conventional routes.  It's more likely going to be through a portfolio lender or private entity (that's providing better terms than hard/private money).

Hope this helps. Feel free to contact.

Thanks,

Texas has always been very protective of the homestead so financing rules are pretty strict.

My understanding is that you can only refinance up to 80% of the market value if you're looking for cash back. So let's say you have a property worth $100,000 and the principal balance is $50,000. You could only pull $30,000 cash out of the property.

Thought about HELOC or perhaps a Bridge Loan (if it's available in TX - I am not sure)

Just throwing some ideas out there...

Flavio

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