Cash out on 7 Properties / Commercial ? CashOutRefi - single p ?

Question

I have this situation below -

• The below chart is from various properties.
• All are on 15 or 30-year conventional loan at 4-ish % It's going great everything is cash flowing.
• As you can see there is too much equity - based on a 30% down on each property I should be able to cash out a good amount of equity and go buy something and repeat.
• I have more than 4 mortgages (total 7 + Primary + HELOC)
• 1 Bank says that I cannot even Refi any single property and would have to do a commercial loan.
• My problem is that the current rates are good , very good cash flow , but I need to cash out equity either one by one or as a whole - so I can buy more.
• What do people typically do in these situations?
• What questions to ask commercial lenders ?
• Any thoughts on slicing and dicing these options ?

Max Cash Out Based on 70% LTV

$100,800.00

$64,527.40

$65,317.00

$88,890.20

$111,428.80

$109,200.00

$30,100.00

Stephanie Medellin · Answer

@Kerry Baird @Stephanie Potter Fannie Mae just simplified their multiple financed properties guidelines to allow cash out on 5-10 properties.

Anish Patel · Answer

@Shay Reddy The conventional mortgages are the cheapest money you would get. You seem to be maximizing that money well. I would pick 3-4 properties with the highest equity and least advantageous loans in place and refi those out with a new LLC. Than use conventional mortgages to acquire more properties. However be mindful of the tax consequences. I think your on a growth strategy so at some point you will have to cross the line and create a business if you don't have one already. Maximize expenses inside the business as the tax code allows. - Anish

Chris Mason · Answer

Came in here to post ^that^. The change was literally a week ago, so what you're finding on google from six months ago is no longer applicable.

If you're having problems with a specific lender saying it's impossible or can't be done, that means that either a) the lender doesn't keep up on guidelines, or b) they have overlays. Either way, find a new lender.

Kerry Baird · Answer

There are a number of lenders here who will correct me if I am wrong...it seems like these things change with the wind.

Loans 1-6 can be cash-out refinanced up to 75% LTV on SFRs and 70% on 2-4 units. Conventional Cash out refinance is not available in spots 7-10. Delayed financing can be done in spots 1-10, where there is an all-cash purchase and refinance is done within 6 months of closing.

Kerry Baird · Answer

Thanks @Stephanie Potter for adding clarification.

Stephanie P. · Answer

@Kerry Baird has it right although we have refinance products, at 70% cash out, that doesn't take the number of properties owned or financed into the equation.

The rates and fees are higher than conventional (but in your case, you're not going to qualify for conventional, so that's not a consideration) and in our case, there is no requirement for tax returns or pay stubs so it's an easier qualification.

Please colleague request me.

Thanks

Stephanie

Jassem A. · Answer

I would think you could do up to 10 conventional mortgages as long as you have enough reserves. Try other local community banks and credit unions and if they will not approve conventional then inquire with their commercial department. Typically commercial mortgage amortization is 20-25 years instead of 30 years but sometimes you can find 30 years and rate may adjust every 5 years based on prime rate or treasury bill. Interest rate is usually 4-5% but sometimes higher. Most will do 75-80% LTV but some will do 85%. Closing costs will also be slightly higher than conventional.

John Horner · Answer

All of our commercial refis are in the 4's also. No reason not to get commercial loans on all and pull up to 75% equity out of all of them. Then repeat.

Shay Reddy · Answer

I do have businesses set up for this and am contemplating moving the properties into the LLCs, trying to figure out if I should do this after the refi ... Do commercial loans typically do cash out refis?

Cash out on 7 Properties / Commercial ? CashOutRefi - single p ?

Cash out on 7 Properties / Commercial ? CashOutRefi - single p ?

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