Should I refi into a portfolio loan?

[Naema N.]

Hi Everyone, looking for some advice. I still consider myself a rookie, so looking for advice from you experienced investors.

We are using the BRRRR method in attempting to build up our portfolio. We have 2 properties that were refinance almost a year ago, both have ppp but the value on both have increased over the last year. We are ready to refi a third property and was considering a portfolio loan to get more out of the properties to use for a fourth property we are about to close on in a few weeks. My hesitation is the ppp, it's giving away money.

What do you guys think? Should I just refi the 3rd property into a single rental loan or do the portfolio loan with all 3 properties in an effort to get more money for other deals?

Any advice would be greatly appreciated.

Thanks

[David M.]

@Naema N.

I know there is some sort of big push for portfolio loans, maybe because they are nonconforming loans.  My personal small issue with them is that the Note/lien goes across multiple properties (in terms of what it sounds like you are doing).  Its not my preference to "do something on one property" which disturbs all three.  For example, if you go to sell one property, now  you need to refinance the others that loan's terms was expecting to have a lien on said property.

Lets face it..  over time there is always ANOTHER optimal solution.  I don't know the rest of your numbers, but if they are that good then it should be worth it to refi and pay for the aditional loans.  Otherwise, let it go.