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
@Michael Davila You can cash out up to 75%LTV if its 1 unit or 70%LTV from 2-4 units.
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!
Thanks for the info. Talking to a few banks they seem to think we cannot do this unless it is a primary residence. Are there certain banks we should be seeking out?
Yes keep looking for other banks. Many will do that. You just have to find the right one. Look for local community banks as a good starting point.
@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.
Thanks for the info. Would this loan have to be a commercial loan or should we be able to do a conventional loan?
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