Cash out refi to fund second home
Im building a second home by refinancing some of my rentals that are paid off. Just a quick background. I have about 20 rental units with all but one property paid off. I need to fund a large second home build in Colorado and rather than get a construction loan, Im using my real estate assets to finance it. I first refinance my primary residence since rates are cheapest, next I refinanced a house I own. This loan was a royal pain in the *** with so many questions and required documents. We do have the majority of the properties in an LLC with a few just in my name since I just inherited them. The mortgage company wanted everything from reasons why my wife had a short break in employment to requiring a profit and loss statement for our property management LLC. It looks like this loan will close next week and I am needing to cash out on one more property. The question of debt to income ratio came up during the last loan so Im trying to improve my position. Since I have only 2 loans now and no other debt to speak of, Im guessing the problem comes from a lot of credit cards I have open but rarely use them all. Before I apply for the next loan, should I cancel some cards? My credit score is in the 800s so I can take a hit by closing cards. Also should I transfer the properties I own individually into an LLC or jointly with my wife? The property I plan to refinance is in my name only. Thanks.