I am cham. New investor from San Antonio, Tx. I own a duplex and triplex in San Antonio, TX and rehabbing them at the moment . Both properties have separate loans.
My question would be, can i do a cash out refi on both the properties combined and have just one big loan that covers both the properties. If any one has done this before or knew any loan officer that could do it, your inputs are much appreciated.
@Travis Shelburne if i am doing two refinance, it means two closing costs, two of every other fees. So i want to see if it’s good idea to refi both under one loan and pullout equity and have just one closing
You will not save much in closing costs, most of all the costs will remain the same....2 appraisals, title insurance, insurance and property tax escrows, recording fees, etc. for each property will remain the same. It would also restrict you with future refinancing or selling each property individually....not worth it. Simply ask a lender what you Would save, and compare the loan terms.
@Cham Vee I’m curious why you would want to consolidate two loans into one? I don’t think there’s an advantage to having one loan over two, unless it’s for administrative ease.
Great work on getting two multi-families, not a bad problem to have.
@Travis Shelburne if i am doing two refinance, it means two closing costs, two of every other fees. So i want to see if it’s good idea to refi both under one loan and pullout equity and have just one closing
@Cham Vee so the answer here is yes, you can do this. But the terms on 2 individual loans will usually be better. Meaning, the normal "blanket" style loan in Texas is a 20 year, adjustable rate loan. And if you get 1 loan per property you should be able to find a 30 year, fixed rate loan. So you will cash flow better with a 30 year fixed rate and have less risk since the rate will never change. Hope all of this makes sense how I am describing it. Feel free to post anything additional if you need. Thanks!
@Travis Shelburne if i am doing two refinance, it means two closing costs, two of every other fees. So i want to see if it’s good idea to refi both under one loan and pullout equity and have just one closing
You will not save much in closing costs, most of all the costs will remain the same....2 appraisals, title insurance, insurance and property tax escrows, recording fees, etc. for each property will remain the same. It would also restrict you with future refinancing or selling each property individually....not worth it. Simply ask a lender what you Would save, and compare the loan terms.