Second Mortgage on Investment Properties

[Scott Mukensnabl]

I currently have 4% loans on 9 of my residential rental properties with LTVs around 30-35% and would like to cash out some of my equity in order to make other investments.  My mortgage broker recommends cash-out refis which would provide me the liquidity but then substantially increase the interest on my current debt as well as the cash out.  Has anyone had any luck obtaining second mortgages on rental properties, which would then allow me to leave the 1st mortgages in place at the lower rates?  If so, any lender recommendations?

[Beth Johnson]

@Scott Mukensnabl

Hey Scott! I'm in WA state too and we do bridge 2nd position loans for acquiring properties. Depending on your need, if it's short term, that may be a faster solution and likely cheaper since cash out refis have gone up in rates and costs.

The other option if your rentals are not in WA could be to find a private lender willing to fund in 2nd position at a conservative LTV behind your bank loans. Lots of investors are looking for safe places to keep their money and short terms show them to keep it somewhat liquid and get you what you need for cash. Happy to float other ideas your way depending on the cash needs - long term, mid or short.