Looking for financing advice for refi on paid for rentals

[Aaron Starr]

hi guys, im looking for advice on what to do. Im 31 and own a 17 unit mobile home park and 2 rental houses

i have never used banks before my credit is not the greatest maybe around 630-680 score but all my properties are paid for 

i need advice on where my net or gross income needs to be for the bank to approve cash out refi or a line of credit.

where do i go from here i want to expand and buy more rentals.

[Alex Bekeza]

@Aaron Starr The credit score will affect how highly you'll be able to leverage your portfolio as well as the rate but there are certainly options since your properties are free and clear. 

Regarding the MHP, your personal income is probably not going to be a factor at all.  The biggest hurdle with MHP cash out refinances will be how many park owned homes there are and the DSCR (net operating income divided by debt service.) 

If personal income is an issue at all there are also programs for your 1-4 unit rentals that can be underwritten like a commercial deal and be based on the subject property's cash flow rather than your personal DTI.

It all comes down to your cash out vs. cash flow goals and you should walk through various options with a mortgage broker. 

[Jerry Padilla]

@Aaron Starr

What are the property values? I am not aware of any lenders that provide financing for mobile home investment properties. If your other properties are valued at, at least $100k there may be portfolio options that I am aware of. 

[Aaron Starr]

@Jerry Padilla I plan on keeping the park paid for since I view at an insurance for my other investments Incase of recession.

My 2 small houses are 70k and 50k both bring in 650 (way below market, Columbus Indiana)

[Jerry Padilla]

@Aaron Starr

Unfortunately, I am not aware of any lenders that will do portfolio lending with loan amounts less than $100k based on the cash flow of the property. I would search through the lenders here on BP to see if any of them are able to lend on those sized loan amounts.