Advice needed on Lenders or Private Money for Buy and Hold

[Emmett Hawkins]

I have a few SF rentals in Georgia and Tennessee with more than 25% equity in each.  Now that I have decent equity, I would like to lower the interest payments to improve cash flow.  I am interested to know what type of interest rates are available with both conventional and portfolio lending.  Further I would love some recommendations of lenders (conventional and portfolio) or private money lenders that work with buy and hold investors. 

[Greg Gaudet]

The deal I just closed on I got 80% LTV at 5.5% with no points (I'm in the most qualified borrower bracket). But I think they've gone up slightly since then. I would just google interest rates and ask a local lender how much of a premium you should expect to pay on the lowest advertised rates.

I believe todays rates are about 4.8-4.9%, so for an investor refi loan I would guess you'd probably get something around 5.5-5.8%. But I'm not a lender.  

I'm assuming you bought these deals with hard money or private money? Because 25% equity isn't really much in my personal opinion.. that really only gives you about 5% to pull out, and that's before closing costs.. But if you're paying for hard money that would make sense. 

For me, I have about 55%, 45% and 35% equity in my units so far. But I bought them all with traditional financing so if I refi I'm going to get a worse interest rate and decrease my cash flow. My plan is to accumulate a few more similar deals and then refi them all when I'm ready to invest all of that money into a multi family property; but the deal has to produce enough cash flow to cover the difference and still produce solid cash flow on top of the added interest, etc.