I've been at the rental game for 15 or more years. I am currently 38. We own 20+ units. We have a very large amount of equity in all our properties. Most of them are refinanced now for 10-15 years. Some less. They are all cash flowing. My wife and I are both teachers. Our w2 income is not very high. We have a LOT of debt. The small local bank has been great working with us. But they continue to have to get board approval every time I want to do a deal now. I'm trying to figure out a way to use my equity to purchase more properties. I do have a LOC but it is attached to my own personal residence. It is 50,000. I don't like having that tied to my own personal property. I'd like to up my LOC some or re-do the line of credit on one of my other properties so it is off my personal. I recently just rehabbed three properties That appraise for appx. 210,000. I owe about 100k total on them. I was thinking these properties would be good to set something up on. I will say that I think the appraisals were high on these properties. I don't think I could sell them for close to that. Sorry I'm rambling. I haven;t really posted much and don't want to look like a moron. However, I typically end up doing so!:)
I would say shop around for a bank that will work with investors. I found a local bank that will close as long as they have 15% equity and as soon as the title work is done. I think the trick also is finding a motivated loan officer.
Alright, I have a meeting with our local bank Friday. I've been going round and round about what I am trying to accomplish. I know everyone is saying go to 30 year ammortizations. However, when I crunch my numbers and look at what is happening to my principal when I switch from 10 year to 30 year it really sucks. I'm also not sure what he is going to offer. I know everyone says to get out of the balloons and into a fixed 30 year. Maybe I should take a couple of properties and do that to start with to generate some more income. One thing I am lacking is good reserves. Maybe bumping a few to create some more cash flow might be smart to start?
Update: I’m currently on my way to refinancing everything on 30 year. Hoping it goes through. Biggest obstacle is showing enough cash reserves.
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