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.  

Create Lasting Wealth Through Real Estate

Join the millions of people achieving financial freedom through the power of real estate investing

Start here