Lowell, MA · Member since 2014 · 335 posts · 52 votes
Hello BiggerPockets,
I bought a 4-unit investment property a few years back in the Massachusetts market. Since then it has gone up in value a bit. I want to see if anyone has any opinion on what is the best way to cash out/pull money. I have been brainstorming on refinance cash out, 2nd mortgage, ... ect. What is your thought??
Lender · Nationwide Lender · Member since 2015 · 1k+ posts · 814 votes
9y
@Frantz Joseph What you were told about is a commercial loan, which would be a 5-7 yr balloon. For residential properties, you can get a residential portfolio loans, which are 30 yr fixed. Yes, rates are higher, but you get the protection. Look for a lender that does those.
Lowell, MA · Member since 2014 · 335 posts · 52 votes
9y
@Todd Dexheimer I agree, it is a better option for buy/hold investor.
@Upen Patel I worked with a residential portfolio lender in the past, but he offered me 25 years balloon with 5 years ARM. I think 30 fixed would make my cash flow looks really good. I was just happy with his offer at the time for the 20% down, 5 years ARM, 25 balloon.
There is a Fannie Mae small multi loan between 1M-8M that was mentioned during the podcast with 20% down and 30 years fixed. The down payment alone is $200k for 1M purchase, so need to team up.
In general, the market has been extremely too hot... I don't know .. the cycle is here. There might be a correction or bubble coming around soon... anybody see any foreclosure chart ??