Cash out refi for property valued at 58k
Have a rental condo owned outright that I want to do a cash out on. Having trouble finding a lender that will do a rental loan due to value of 58k. It’s rented at 775/month, so great return. Want to buy another in the building with the funds.
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I'd suggest meeting with a small local bank about setting up a Business Line of Credit collateralized by your existing rental. That would allow you to tap into your equity to acquire another property. I'm paying Prime+1%, or 6.5% interest. There are some setup fees such as, appraisal, closing fees. I paid around $500 to setup my line, and pay another $200 annually to maintain the line, above simple interest when the line is being utilized. Think of it as a large credit card with a low interest rate.