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Updated almost 6 years ago,

User Stats

82
Posts
10
Votes
Amul Sutaria
  • Rental Property Investor
  • Montville, NJ
10
Votes |
82
Posts

How to leverage properties owned free and clear

Amul Sutaria
  • Rental Property Investor
  • Montville, NJ
Posted

hi BP!

Long story short, I was about to close on 2 properties and I lost my job. My lenders pulled out day before i was to close, and I was left to lose the deals or buy cash. I opted for buying cash and now I own two properties free and clear (well, I bought them with a line of credit so not exactly) under my LLC. One is a SFH (109k), and other is a duplex (126k). Yeah, a bunch of cash tied up...

Another detail is that I have 2 weeks more of pay from the job that let me go, basically a month of severance pay.  I got a verbal offer from another job, so if i start working there, I will have had no gaps in my employment.  

My goal is to leverage the free and clear owned properties and scale my rental portfolio.  But the question is.. how? 

1.  Getting a line of credit against the properties (but wouldnt that just be a line of credit against a line of credit, since i bought them with one?)

2.  Refinancing and pulling money out (but some lenders are saying I have to wait 6 months because I lost my job, but actually I havent had a gap in my employment)

What other options do I have?

Portfolio loan? Commercial line of credit?  I need to know the best option!