Refinance Exisiting Rental

6 Replies

My partner is looking into refinancing his existing rental property that is on an adjusted rate. He owes around $35000 on the existing loan and a realtor stated to him that it should appraise for $70000 to $75000.

My question is what would be the best approach to get on a fixed rate and be able to get some money back in order to invest in future deals. We are located in Texas

Hello @Michael Davila

I agree with @Harjeet Bhatti ideally you would want around a 70% loan to value for that one house, if it is the only house in your portfolio.

If you have multiple the 70% rule I would expand to the entire portfolio.

I am currently in the same position of trying to leverage equity in my first home for another deal.

Let me know if you need help with anything and happy hunting!

@Michael Davila You’ll probably have to call around. Getting 70% LTV on a $70K property gives you a loan balance of $49K (ignoring anything you’d roll into it). Many (not all) banks will have loan minimums and it’s not uncommon for $49K to just plain not meet that threshold.

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