Question/Advise: financing/funding options

4 Replies


I'm still relatively new to REI. I looking for some advise/opinions on financing/funding for my next deal. I'm looking to grow my portfolio.

Some base info:

1) I own 3 SFH in the midwest. (~$45k-$50k each)

2) I’m an out of state investor. (located in California)

3) The 3 properties paid for…no loans on them.


1) What’s the best way to pull or leverage the equity from my 3 units? local bank?

2) If local bank…would it be in California or in the same area where my properties are located?

3) Is it possible to set it up as a line of credit vs. a conventional loan? Or should I ReFi them?

4) If ReFi…would I do it one at a time or is it possible to package them up?

5) Or should I take out a conventional loan and just let the cash flow from the 3 units pay off the loan? Can I qualify for a Fannie Mae for investment properties?

Thanks in advance for any advise.


@Donnie N. - how long have you owned the 3 properties? Some lenders have seasoning requirements which range from 6 months to a year before you can do a full cash-out. 

Usually local/community banks like to work in markets they know. There are nationwide lenders. 

As for LOC v. Loan: it's your preference and needs. A lot of people who need access to cash to close fast on deals go with loc. Others who like to do more buy & holds go with conventional. And, you can get a few properties under one loan, it depends on the lender.

Thanks @George Despotopoulos !

1 of them I had for over 1 yr. The 2nd one for about 5months. The 3rd is brand new. That's what I thought, that I would need to season them for a bit first. I'll start researching for the local/community banks. Any nationwide lender that you would recommend?

I'm leaning toward the LOC for now to speed up the acquisition/deal process. But a conventional would also work, it'll all depend on what I can get.

Hello Donnie,

My first questions is how quickly do you plan growing? How many properties would you like to acquire over a 12 month period. There is a strategy involve here that I used to grow a large portfolio of SFRs in a short period of time. Happy to share.

@Bob Green Thanks Bob!

How quickly...that's relative. My original goal was to acquire 2-3 SFH/yr for the first 2-3 years. (I'm about ~1.5 yr in to this venture) Then move in multi-units. However, now I'm starting to rethink that plan. I'm starting to think that maybe start moving in to a multi-unit sooner. The SFH was a good start but the multi-units stills to be more attractive for a few other reasons. (e.g. easier to rent out, etc.)

Love to hear about how what route you took to scale up and at what pace. Happy to give you a ring later this week or weekend to dive deeper if it's easier to talk over the phone. 

Thanks again Bob! Looking forward to hearing your advice. 


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