Interest Rates are Squeezing Cash Flow
I just refi-ed two rentals recently and am definitely seeing the effects of interest rates bumping up and my monthly cash flow. One was 5.75% and the other was 6%. Both with Intercap.
What are some interest rates that you've been getting on investment loans recently?
#2 General Landlording & Rental Properties Contributor
It is a cost of doing business. Increase your rents accordingly. Market rents should be rising along with rising interest rates.
My interest rates have risen up to around 4.5%. Up 1/2% in the last 2 months. I have a variable as opposed to a fixed rate.
#5 Wholesaling Contributor
- Real Estate Broker
- Naples, FL
7% fixed cash out refis. 10 years straight amortization. They have now raised their rates to 7.5% and no longer offer amortized loans. Conventus Lending in CA.
Just closed on a duplex on Monday. My third property of the year.
20% down payment, 5.45% fixed, 25 year amortization, 7 year balloon. Could have gotten 5.25% with a 5 year balloon. Partnership has a 5 year plan, so decided to go with the 7 year option to give cushion on what we may do. This is with a local bank that will keep these in-house.