I currently have 7 rentals (SFR) and I am in the process of setting up a LLC. I am going to refinance 5-7 of the properties in the name of the LLC. I've been in discussions with with a director of private banking at a local bank but in order for her to be involved she wants to wrap them into one commercial loan. Each property currently cash flows $100-$150/mo on a 15 yr, 6% loan. If I refinance as a consolidated mortgage, I can put them on a 30yr, 5%, 5yr balloon, and create an extra $1750/mo cash flow to reinvest. Has anyone done this type of strategy? I realize a few of the pitfalls but would like to here other people's thoughts on this. Thanks,
Sounds like a pretty good deal if the bank is willing to amortize it over 30 years at a lower rate for the introductory term. Just be sure to check the origination charges, if any.
What is that bank offering you as potions in 5 years when that balloon is due
I am in a very similar situation. Although I can't offer you feedback yet, I would love to hear hoe this pans out for you. Please keep us in the loop and I will do the same. The balloon is a concern depending on the details of course so if you can provide amplifying info on that, folks may be able to better advise.
Thank you all for the feedback. I've requested additional information and possibly getting a copy of the loan docs that would be used to help answer some of the unknowns. I'll add some more detail when I get the information.
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