12 sfh free & clear, cash out options? Stuck in limbo

[Kelly A.]

Hello all! Frequent lurker here, decided to join in on the conversations. Here’s my current situation.

I've been flipping homes full time since 2013. In between flips, I've purchased 12 SFH with cash. I have 9 of these rented. I'm now in need of capital to rehab the remaining 3 and to purchase additional rentals. I have tried local credit unions which is a no-go since I write off a lot on taxes & it shows my DTI as being too high. Any advice? Net worth 1.2M - I'd like to pull out 200K in a cash out refinance or portfolio type loan. I looked into one private lender that could offer individual loans on each property minimum 60 K with 75 % LTV. Most of my homes appraise in mid 70's range, so this would not work. I'm in small town Kentucky & all homes are in my S Corp.

[Javier D.]

@Kelly Aldridge I had same exact issue. Same amount of free and clear properties so I know its frustrating at times to see that money stuck in bricks and mortars. i decided not to leverage the properties that brought me x amount of net income(those 12 exactly). what i did: i sold my worst performing property. well 3rd worst but in the worst neighborhood. I have a heloc on my primary that I utilize from time to time. I dont overdo it with it and pay it back pretty quickly. This had the best interest rates out of all the options i was offered. Your net worth having those will help if you decide to scale to multifamily in the future and honestly i rather manage 10-20 properties not leveraged than 100 that are. I hope to read what you decided so maybe You can confirm I did the right thing or find me a better option. :) Good luck!