Cash out on investment properties

[Mihaela Antonescu]

I am looking for a creative financing solution. I have 4 properties in Baltimore. No mortgages on them. All of them rented to section 8 tenants. They bring good cash flow and I want to keep them. I used a line of credit to buy and rehab them. I would like to take some cash out (65% LTV) to pay off the HLOC. Is there any bank that would refinance investment properties with cash out? I want to take out a loan with the houses as security. Is anybody interested to defer capital gains for minimum 5years without the headache of a landlord? I would be interested to get an option to buy the properties back.

[Jon Holdman]

Try a different lender. Fannie Mae guidelines allow up to 10 mortgaged properties. You do have to have six months PITIA reserves for each mortgaged property. Income from a property has to appear on two tax returns before it will be considered. But if you can meet those requirements, you should be able to get loans 5-10 with the right lender.

A commercial loan lender will have even looser requirements, though often shorter terms and higher rates. If you develop a relationship with a bank that does these sort of loans, you won't even be stuck at the 10 loan limit.