Refinancing with cashout after 5 properties
Hi.
I have 3 SFH's that I own. #1 was paid off, rented and then I cashed out to fund others. #2 I live in. # 3 I just purchased, remodeled, rented, and will refinance and cashout in May (6 months season). I actively looking to buy #4, and then #5 immediately after. All of these properties that I purchased are financed of course with the 20 percent down, conventional loan.
My two questions are this... I've read that for property #5 or more, it will be difficult to refinance, and cashout because the banks and underwriters don't usually do this. If this is true, then how are you able to do the brrrr method past 5 properties? If this is true I was thinking about using loan #4 to do a flip so that I can acquire more cash on hand so that I can purchase the same properties for cash. I was trying to avoid hard money lending when acquiring houses and conventional loans are pretty easy for me.
Most Popular Reply
@Carlotta Hall
I've BRRRR'd 4 properties so far and no issues, starting on #5 now. Its 10 mortgages in your name. But you can get Porfolio loans. Refinance all properties under 1 commercial loan and then start all over.