Possible strategy on refinancing five of my rental properties
2 Replies
Leon Lee
Real Estate Investor from Atlanta, GA
posted about 2 years ago
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
Wayne Brooks
Real Estate Professional from West Palm Beach, Florida
replied about 2 years ago
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%.
Stephanie P.
from Washington, DC Mortgage Lender/Broker
replied about 2 years ago
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.