Loan off paid for rental

9 Replies

What options for finance would be suggested for getting a loan with little $ down? I have a house worth $190,000 that will is mortgage free. It’s in an LLC in New Hampshire. It’s rented for $1250/mo. Thanks in advance for your advice.

You have to keep 25% equity in the home to cash out. Mostly lender won't cash out under LLC for conventional loan. You do have option under commercial loan.

I would sell the house for $190,000 buy $800,000 apartment building that profits $70,000 plus a year. 

Assuming that you have a good reason for keeping the house in NH, there is such a thing as an equity line of credit on a commercial (owned in LLC) property. Although for that small an amount, you will have trouble finding one. You might simply take out a small commercial mortgage with a local portfolio lender. Don't talk to "mortgage departments", talk to the "commercial lending" departments. You will likely only get 75-80% of the appraised value. Once you have title in an LLC, it is not a residential mortgage, it is commercial. And they won't like the fact that you are not local, either.

@Jeff S. your question stated "getting a loan with little $ down".  The assumption here is an investment property but maybe not?  What is your loan for specifically?  Primary home?  Investment home?  Something else?  Knowing what your loan is used for will help us giving the right recommendation.  Thanks!

My commercial lender will only do 50-60% ltv for cash-out, plus high rate and crappy adjustable and callable terms  plus bothering you to report your financials every year.

I did a 15yr fixed (could've done a 30) cash out on a rental house recently I own personally. 4.25% fixed with minimal costs at 75% LTV. No reporting.

Was the LLC 'asset protection' on a house worth it? Need to stay or sell now.

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UPDATE: Door #1 (SFH - 2bd/1ba) is owned free and clear and is owned by the New Hampshire LLC it resides in. We are looking to do a cash out refi to purchase another property. Any suggestions on best bank or credit union for doing this. We do not want to us any personal money and want Door #1 to buy Door #2. I'm assuming this means a corporate cash out refi loan. Any suggestions appreciated.

I can suggest a couple of good local NH banks and also have a contact for investor re-fi's from a creative national lender who could no doubt deal with your scenario. Let's connect and I can share......  :)

Ok, so I am now confused about the ownership of the house. Once I paid the transfer tax into an LLC, so I personally own the home or does the LLC. The reason I ask is that in trying to do a cash-out refi, is the house still personally owned by me so I can do a non-corporate cash-out refi or is the corp way the only way to go? For example, if I was to get a HELOC on it, would it be a traditional HELOC, but he LLC makes the payments or is it a corporate loan instead? Sorry for all the questions, this is the closest to a BRRRR that I have ever done and don't want to mess this up.

Thanks in advance. 

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