Refinance investment property

2 Replies

A couple years ago I inherited a 12 unit rental property with no mortgage. After a couple years of rehabbing the place, I pulled a HELOC to purchase a 6 family. It was brought to my attention by another investor that I should refinance the property to have buying power. Where should I start looking to refinance my property? I would love to start seriously investing in more rental properties!

Thanks for your help,


You need to work with a lender that has all the commercial options for you to consider the best cash out refinance. In my opinion, the best terms you will get for a long term mortgage is with Fannie Mae and Freddie Mac. However, their loan minimums start at $850,000.00. So I'm not sure if your loan size can or will get to that level. 

That said, there are many investors that serve the small balance multi market. They have varying terms available, so you just need a lender that has many of these options to discuss your specific scenario with. Also your location to an MSA is very important. If you are deemed in a tertiary market (rural to the nearest MSA) you will find that many lenders wont serve that market, or if they do, their terms for the loan will be a bit higher than the conventional rates available to an MSA market.

I hope this helps. 

@Greg Grochowski , start with local banks and CUs. If the loan will be $1MM+, you can check into getting a Fannie or Freddie small-balance loan, which generally have great terms.

Are you still realizing depreciation on the inherited property? If not, it may be worth selling that and buying a new place where you can start offsetting your income. The capital gains taxes should be minimal since its basis would have reset when you inherited the place or do a 1031, if necessary.