Cash out refi & full time investor?

Cash out refi & full time investor?

Rental Property Investor · Rochester, NY · Member since 2018 · 26 posts · 4 votes

Hello! How are you full time investors qualifying for cash out refis? Banks don't like us bc we don't have W2 income, and a lot of the inventory here is between 50-100k and some bigger lenders want 100k min loan or property value so a lot of our assets don't fit their model.

Any advice is appreciated! Thanks BP community!

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Investor · Rochester, NY · Member since 2015 · 499 posts · 169 votes
5y

Family First Credit Union talk to Alan.  Keep calling little banks and credit unions if not

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  • Whitney HuttenPro Member
    Investor · Boulder, CO · Member since 2016 · 1k+ posts · 1k+ votes
    5y

    @Jacob Thorp My husband can still qualify for convetional cashouts because he has a W2.  I don't, so I have to commercial lending (and I can still get a cashout). It sounds like the main sticking point is the loan value.  In that case, buy 2-3 properties together and do a portfolio loan and get around the minimum loan value.

  • Rental Property Investor · Rochester, NY · Member since 2018 · 26 posts · 4 votes
    5y

    @Whitney Hutten, thanks for the response! I have been looking for portfolio loans exclusively, but most of the lenders have a 75k or 100k min property value requirement and won't even entertain the lower properties. Which is too bad, Rochester, NY has been in the news for being a VERY stable market, but as a result the prices are lower! Finding a lender that is willing to work with us has been tricky post-COVID! 

  • Flipper/Rehabber · Rochester, NY · Member since 2014 · 1k+ posts · 1k+ votes
    5y

    @Jacob Thorp if you have more than one property you can combine them in a blanket loan to get over that minimum value. Your closing costs will be higher but I’ve done this a number of times. 

  • Investor · Rochester, NY · Member since 2017 · 14 posts · 11 votes
    5y

    @Jacob Thorp - Have you spoken to CNB or Upstate Bank?  I currently have multiple properties valued between $50-100K under portfolio mortgages with CNB.  I haven't worked with Upstate but I have spoken to them and have been told that they would do the same.

  • Rental Property Investor · Rochester, NY · Member since 2018 · 26 posts · 4 votes
    5y

    @Brian Buxton

    We went to CNB, they don't like the DTI bc we don't have regular jobs. We live off of the properties. :/

    Upstate is on my list to go talk to though!

  • Investor · Rochester, NY · Member since 2015 · 499 posts · 169 votes
    5y

    Family First Credit Union talk to Alan.  Keep calling little banks and credit unions if not

  • Rental Property Investor · Rochester, NY · Member since 2018 · 26 posts · 4 votes
    5y

    @Martin Grizzanti

    Thanks Martin! I have been making a list of local banks and putting together a presentation to give. I hope it'll work out! What do you guys use for lending in Rochester?

  • Investor · Rochester, NY · Member since 2015 · 499 posts · 169 votes
    5y

    CNB / Family F C U 

  • Lender · United States · Member since 2020 · 1k+ posts · 499 votes
    5y

    If doing a portfolio, many lenders will lower the minimum requirements to around $40k/$50k per property.

  • Rental Property Investor · Rochester, NY · Member since 2018 · 26 posts · 4 votes
    5y

    @Timothy Hero Do you have any recommended companies?

  • Lender · United States · Member since 2020 · 1k+ posts · 499 votes
    5y
    Originally posted by @Jacob Thorp:

    @Timothy Hero Do you have any recommended companies?

     How many properties are you looking to refinance and what's the average value?

  • Rental Property Investor · Rochester, NY · Member since 2018 · 26 posts · 4 votes
    5y

    @Timothy Hero 11 properties. Values below.

    $ 65,000.00

    $ 50,000.00

    $ 65,000.00

    $ 65,000.00

    $ 50,000.00

    $ 130,000.00

    $ 115,000.00

    $ 75,000.00

    $ 65,000.00

    $ 110,000.00

    Total: 790

  • Lender · Nationwide Lender · Member since 2019 · 391 posts · 140 votes
    5y

    @Jacob Thorp

    Are all of these properties in NY?

  • Rental Property Investor · Rochester, NY · Member since 2018 · 26 posts · 4 votes
    5y

    @David Kelly

    They're all in Rochester! Southeast section of the 19th ward by the U of R.

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