All Forum Posts by: Account Closed

 @Tomash Gabyak Try a local portfolio lender that makes commercial loans. Just call local banks and ask if they will make you a cash-out refinance portfolio loan on a rental property. Ask about their LTC/LTV ratios and cash-flow requirements. These factors will differ somewhat between portfolio lenders since these banks are making the loan with their own money and their own rules (not selling to Freddie/Fannie/secondary market). If you call enough, you will find one that knows your area and has an appetite for this type of lending.

I have financed 2-4 unit house hack and new construction projects. I have not personally built new construction to be used as investment. I think there are many strategies that would work for you, but these all depend on your personal goals and criteria. Different locations are going to make much more sense to purchase a 3-4 plex, while others might lend themselves to new construction due to having limited supply of these types of properties.

@Kevin Pena You can definitely cash out refinance your property. The lender referenced the 2% fee cap that exists on Texas Cash-Out refinances, which no longer includes third-party fees like appraisal and title policy, but could still come into play with a relatively new loan amount of $75k-$90k. Try a different lender or send me a PM and I will help you out or point you in the right direction. Best of luck, Kevin.

@Skye Penland - I haven't seen anyone mention constructing your own tri/four plex as an option. Commercial/portfolio lenders would finance the interim construction w/ a reputable builder and then your end/perm loan would be with your VA lender of choice. Some of the quirks of the VA loan are somewhat mitigated by a brand-new turnkey property, as well. Construction costs are in flux these days but being able to control location (considering zoning), budget, STR vs. LTR finish out, etc may be a welcome change over sitting and waiting for an existing property that fits whatever criteria you may have.

The drawback would be timeframe for the build and it would not be a true no-money-down solution, given that most lenders are going to want a little skin in the game due to inherent risks with construction: however, a modest down payment on the initial land purchase is often enough equity to meet policies for the full project.

Best of luck!

@Matt Stricklen I finance these types of deals in Travis and Williamson county. Any specific questions you have? Feel free to message me if there is something I can help with.

Curtis, I'd suggest either Isbell Property Management or Linnemann Property Management. I have a lot of experience with these two but have heard numerous other names provide good PM services in Killeen/Harker Heights, as well. Let me know if you their contact information.

@Robert Skruhak I think the cash-out refi sounds like a good option for providing you funds for your next properties.

My two cents is that $300/month in cash-flow on $400k duplex sounds a little thin from a banks perspective unless you're factoring a high vacancy allowance or similar, while running your numbers. There is no set way that banks/lenders will lend on your deal with some placing more importance on LTV ratio and others who value cash-flow more highly. Shopping multiple lenders and/or multiple types of banks is probably good advice for you. Feel free to reach out to me if you want a little more detailed review on my bank's perspective. Best of luck to you.

@Kavita Joshi Welcome to BiggerPockets and congrats on starting your REI journey! It seems like you've got some good cash flow locations on your list. I'm most familiar with Killeen and Temple where there are a high number of 4-8 multifamily properties that cash flow well, but appreciation is secondary. Building a team that has your best interest in mind is crucial as an out of state investor: just as others have said. I can personally vouch for both Isbell and Linnemann Property Management. Message me if you'd like a personal contact to either of them. Just as @Andres I. Cepeda said, I'm always looking to help investors like yourself grow their business and enjoy answering any lending or area specific questions you might have. Best of luck to you.

@Corey Stewart - lets try this again.

@Corey Stewart I think you've got some good perspectives and thoughts on your situation already, but I'd second what @John Morgan said about keep trying banks. There is no set number that all banks look for to justify a cash-out refi; different lenders look at numbers very differently. However, there is a point where closing cost and the 70%-80% required LTV diminishes the amount of equity that you're able to recapture. Feel free to PM me: I don't mind looking at your specifics and giving you my perspective on your specific situation and I might be able to steer you in the right direction.