Looking to cash out of BRRR properties in Cleveland, OH
Looking for some advice and introductions to lenders,
I have a property paid in cash, with no loan that is worth $70,000. I am having trouble finding a lender who will work with me to do a cash out refinance to complete the BRRR method. The reason I am running into trouble is because on an 80/20 cash out the loan amount is only $56,000 and I can not find a lender willing to give me a loan on my rental property for the small loan amount of $56k. I am looking at buying another property cash for 65k putting 12k into it and having it appraise for around $80k in hopes of creating a portfolio loan, if that is even a possibility at this point. (both properties cash flow $1,300/month so they are money machines)
My other option (not ideal) is to put 20% down come out of pocket about $15k, dump $10k into rehab and be $25k into a house that will appraise at for $80k. Problem with that is I would have to have to take out an original conventional loan to start, then right away refinance and get double hit with the lenders fees.
I know I will run into the same issue as before where the money is essentially locked into equity because of the small loan amounts if I move forward and purchase this now house for $65k.
Does anyone know a lender who does small loan amounts on rental properties at a reasonable rate? I am also extremely interested in Portfolio loans, but I have zero contacts dealing with those types of loans.
Finally, I have an 'excellent' credit score, no debt at all besides 5 other rentals at 75/25 LTV (all cash flow positive) and a job that I claim over 100,000 in taxes, and have three years of consistent tax returns showing that. Finally, single and no kids.
I know a lot of people are much smarter than me when it comes to financing deals, and I am asking you to give me some real options of how to grow my portfolio while still leveraging my cash, and not getting eaten alive by lending costs.
Thank you everyone for the advice it means more than you know.
A million thanks,
Chris