I got my first investment property in March of this year. Since then I have been grinding my tail off to scale. I just closed on my 11th and 12th properties on back to back days. I have 7 rentals, 1 AirBnb and 4 in progress at the moment. I've acquired them with Sub2, Conventional Loans and Hard Money.
My question is, should I refinance them into one large portfolio loan around 4% interest? Or refinance them individually?
I have spent around $170k of my own money so far. I have just over $2.3mm in real estate with just above $900k in equity. They are all single family homes. This cash-out is really going to spring board my plans. My goal was 8 properties by Jan. 2020. I’m at 12. I’d like to hit 30 by the end of 2020. What is the best strategy to do these refi’s?
Thanks for all of your advice. My market is Delaware.
Congrats on the success. You have really been 'getting the lead out' !!!
We've found that the initial (individual, and owner occupant) rates were much better. However, your 4% especially if that's commercial rates, is very good. Portfolio lending at least from my experience adds 1-1.5% to your APR compared to term loans.
No reason to move those good rates over unless you have to. We just transitioned into the commercial lending world, and so far so good. Rates are just a little higher.
@Jim Goebel Thanks. I'm determined as hell to execute my plan to get to my goals. I appreciate the advice.
One of the more problematic aspects of putting these into a blanket or umbrella type of loan is getting them back out later. When you want to sell off a house, for whatever reason. Some have onerous reporting requirements.