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.
Create Lasting Wealth Through Real Estate
Join the millions of people achieving financial freedom through the power of real estate investing