3 Rentals, what to do next?

Question

I want to scale faster, so many options out there.  What would you guys do in my shoes?  These are all in Atlanta Georgia

Property 1 - Townhome Rental

Property Value: 285k

Mortgage Balance:  116k

Property 2 - Townhome Rental

Property Value: 300k

Mortgage Balance: 188k

Property 3 - Single Family Rental (House Hack)

Property Value: 505k

Mortgage Balance: 479k

Jordan Bean · Answer

Hey Kenny, seems like you have some good equity in both properties 1 & 2. You could do a cash out deal on a debt service coverage ratio loan. You could blanket them together on one loan at 70% LTV an get roughly 105K in cash after your current payoffs.  A lot of my clients do this method to then use that money as a down payment on another property. If are you interested in seeing what a quote would look like on a refinance. I would love to chat I have rates at 6.9% fixed on DSCR. We are a real estate investment company, we own close to 800 rental properties and Fix & flip around 100 properties per year. I have been in the lending business for 7 years, but just getting started in Biggerpockets, and I am looking to connect with different investors.

Kenny Luna · Answer

Property 1 is 5% Interest Rate & Property 2 is 3.625%

Jevon Shaw · Answer

You could try to 1031 properties 1 and 2 into a large multifamily since you’ve got plenty of equity

Jay Hurst · Answer

@Kenny Luna    It would be helpful to understand what your current interest rates are on property 1 and 2.

Nathan Harden · Answer

I wouldn't do anything with property #3, not enough equity in it, assuming that is your most recent purchase. As far as the other two, you have plenty of equity in those to borrow against those. Whether that is a line of credit or a cash out refi, good news is that you have options and as long as you cash flow after you borrow against them, then the scenario comes down to which option is best for you at this given point in time.

Good luck!