Cash Out Refinance after 4 mortgages, what are my options?

[Jarred Sleeth]

Hey BP,

I recently made some major upgrades to a property of mine and wanted to do a cash out refinance on the property. It's in a conventional 30 year at 5.5% with about 53k on the clock. I figured I could cash out about 15k on this property and move it into a new deal, as well as lowering that 5.5% rate.  Now, after some research I learn that after 4 mortgages you cannot do a cash out refi with a 30 year am, and I would need to come up with a different plan. Are ARMs my only option here?  I suppose I could get a portfolio or commercial loan on it but this might kill my cash flow with a shorter term and higher rate.

Has anyone been in this position before? What did you do?

Thanks for the advice!

Jarred

[Rex King]

if you have a decent portfolio and good credit I would go into local banks who will not sell the notes. They have more flexibility and able to work with you w little more.

We get 4.25-4.50%, 25 year amort and must be at 80% LTV of appraisal. We typically by cash (under market), do work then get financing. Last 2 buys.

Duplex bought for 318k. Light rehab of 20-23k. Appraised 420k. We do not get much cashflow ($400/mo before repairs, $200 after repairs in our model) but we do not have much money on and we have a beautiful asset.

Duplex bought at 195k. Did 30k in repairs and appraised at 320k. We also converted upper unit into 2 seperate units so we now have a triplex that cashflows over 1k/ mo amd we got paid 20k to but this place. We call this a solid triple, maybe home run.