I currently own 2 rentals with about $90k in equity ($320k value, $230k mortgages). I have about $5k in cash and want to buy a 3rd rental property (approx $130k). What's the best way to get cash out of the first 2 so I can purchase another rental? I was hoping for a blanket loan of $360k to cover $450k for all 3 rentals (80% LTV). I would pay off the first two mortgages with the proceeds so that all 3 rentals are tied to the commercial loan. Is that even possible?
Typically no. Most lenders would not do it, nor would I suggest doing it. Why risk all three if something goes wrong in one. Best way is to restructure the loans in the first two.
@Rich Waldis based on your information you don't have enough cash reserves. You will need to show at least enough for 6 months on a refi.