Possible strategy on refinancing five of my rental properties

2 Replies

Hi, All

I am a newbie and have a question on refinancing six of my rental properties. I wonder whether I could ask some ideas from the forum:

Currently, I have six SFH that are all financed using 30-y fixed residential loans. Based on the rough estimation on market values and remaining loans, if I can get 75% LTV refinanced amounts, I may pull out ~$180K cash by refinancing all of them. The problem is that if I refinance them separately, I can get only ~$50K to $20K from each individual property. Now, I want to start my first flip rental property and I want to get about ~$150K cash to start with. What will be the best available strategies to get ~$150K cash for purchase and rehab? I do have another property but I already have an HELOC on it.

Your help will be greatly appreciated!

Lee  

How does the 25% equity spread on the combined total come out higher than the spread on each property added together?  I can see it working the other way, if you have properties already financed at more than 75%.

Originally posted by @Leon Lee :

Hi, All

I am a newbie and have a question on refinancing six of my rental properties. I wonder whether I could ask some ideas from the forum:

Currently, I have six SFH that are all financed using 30-y fixed residential loans. Based on the rough estimation on market values and remaining loans, if I can get 75% LTV refinanced amounts, I may pull out ~$180K cash by refinancing all of them. The problem is that if I refinance them separately, I can get only ~$50K to $20K from each individual property. Now, I want to start my first flip rental property and I want to get about ~$150K cash to start with. What will be the best available strategies to get ~$150K cash for purchase and rehab? I do have another property but I already have an HELOC on it.

Your help will be greatly appreciated!

Lee  

 Individually, you don't have enough equity, but there are hard money options out there that will allow a lender credit toward the first draw to minimize the barrier to entry.  Once the renovations are complete, you can refinance out.