Best loan for my rental property?

2 Replies

I did a new build hoping it was going to be a quick build and sell. That did not happen. I had a construction loan that obviously came due. i tried to get a traditional mortgage and didnt have success so I ended up paying cash and now own the place outright. I have now rented the house and have a signed two month lease. I never intended to have all this cash in so I'm looking for a way to get some out. I am thinking HELOC may be the best way to go but when I went to my banks WF and BOFA they made it seem like the process was going to be in line with a regular mortgage which I am hoping to avoid as its such a pain. I was told once that there was a loan for investment properties tied to the rental revenue. Basically they will give you the amount up to X% of your monthly rental income. I have never seen anything like that though. Is anyone familiar with that type of quick and easy loan? I am just looking for something quick and basic as I own the place 100% and have plenty of rental income to cover the amount I want to take out.

@Dee Bowers you didn't mention what type of property this is. Is this a 1-4 unit? If so, you should talk to lenders about getting conventional financing in order to "cash out" refinance. You will be much better off with banks other than WF and BOFA. I am not from your area, so I don't have a lot of great recommendations for you.

You could also go the commercial route if you need to if the property has more than 5 units. The process is similar, you will just have to refi the loan every so often. 

Call 10 local banks, and you will find 4 that will do the loan for you. 

Originally posted by @John Warren :

@Dee Bowers you didn't mention what type of property this is. Is this a 1-4 unit? If so, you should talk to lenders about getting conventional financing in order to "cash out" refinance. You will be much better off with banks other than WF and BOFA. I am not from your area, so I don't have a lot of great recommendations for you.

You could also go the commercial route if you need to if the property has more than 5 units. The process is similar, you will just have to refi the loan every so often. 

Call 10 local banks, and you will find 4 that will do the loan for you. 

Its a single family house worth conservatively 850k. I tried getting conventional through 4 different brokers and had no luck. I own my own company and while in my mind I make plenty of money I guess they dont think so. I ended up just paying cash because I had plenty in the bank. I have no idea what they are looking at but apparently I dont have it. It really doesnt make sense to me how I shouldnt be able to cash out for 50% in a nice easy loan.