BRRRR Question - How does Refinance launch me forward?
I owe $17,000 on a Rental Investment (10/1 ARM) - Initial Loan Investment at $30,000. Current home value - $80,000. With the current interest rate hikes in mind, what do you recommend I do with the investment? The equity upside is much higher than cash flow.
In order to evaluate the efficacy of refinancing your rental you will need to provide a broker the following information:
1. Your credit score
2. Rent
3. Taxes and insurance
Because this is a small loan you will need to find a local bank or credit union. Hard money lenders will not lend under 100k. The property has to have a 1.25 debt service coverage for a bank or credit union. Most banks will shorten the term on a small loan so you may be looking at a 5-15. Or even a 10 year fixed. I would reach out to a broker or lender and see what loan amount and term your rent and credit support. Good luck,
Hard money loans below 100k are certainly possible.
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#3 BRRRR - Buy, Rehab, Rent, Refinance, Repeat Contributor
- Investor
- Austin, TX
If you're finding deals to close on take the cash out. Otherwise not a good time to refinance or sell