Rate Locked Investors

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Rate Locked Investors

Tyler MccleanPro Member
Investor · Nassau County, NY · Member since 2022 · 71 posts · 19 votes

I see alot of people who purchased around early 2020's who want to access cash from their investments but cant refinance without messing up their cashflow. Is anyone here running into similar issue?

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Caleb Brown
Real Estate Agent · Kansas City · Member since 2018 · 4k+ posts · 3k+ votes
15h

Many are. Not a ton of options to tap. I see 1031 exchanges more common.

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  • Caleb Brown
    Real Estate Agent · Kansas City · Member since 2018 · 4k+ posts · 3k+ votes
    15h

    Many are. Not a ton of options to tap. I see 1031 exchanges more common.

    1Reply
  • Andrew FreedBusiness Member
    Investor · Worcester, MA · Member since 2020 · 1k+ posts · 1k+ votes
    14h

    @Tyler Mcclean - Good question! Investors always have the option of opening up a RELOC, rental line of credit or an equity loan to access the equity beyond the first position. I've done that on primary residence, investment properties, and commercial properties. Typically for owner occupants, you can get a HELOC or equity loan up to 100%. For investment property, they typically go as high as 75%. Solid tactic to tap unutilized equity to scale your portfolio while keeping good debt terms in place.

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  • Jose Ramirez
    Investor · Beach park IL · Member since 2022 · 17 posts · 9 votes
    5h

    Yes I’m at in IL and trying to do a cash out of one of my rental and new loan payment is the same as the rental payment and I be not making no cash flow unless I increase the rent payment

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    • Tyler MccleanPro Member
      OP
      Investor · Nassau County, NY · Member since 2022 · 71 posts · 19 votes
      5h

      Have you considered other options? Like taking a second as a line of credit? What are they doing for you on the rate?

      0Reply
    • Jose Ramirez
      Investor · Beach park IL · Member since 2022 · 17 posts · 9 votes
      5h

      Dscr loan 7.5 %

      0Reply
    • Tyler MccleanPro Member
      OP
      Investor · Nassau County, NY · Member since 2022 · 71 posts · 19 votes
      5h

      I just messaged you

      0Reply
  • Divin KanyamaBusiness Member
    Accountant · Seattle, WA · Member since 2025 · 155 posts · 44 votes
    1h

    @Tyler Mcclean , This is a common issue for investors who bought or refinanced when rates were historically low. The property may have substantial equity, but replacing a 3%–4% loan with today’s financing can reduce—or completely eliminate—the cash flow.

    Before refinancing the entire property, I would compare alternatives such as a HELOC, second-position loan, partial sale, or borrowing against another asset. Each option has different costs and risks, so the key is determining whether the cash will produce a return that justifies the added debt. Sometimes protecting strong cash flow is more valuable than accessing equity simply because it is available.

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