Investor · Lake Worth, FL · Member since 2014 · 378 posts · 184 votes
I have two properties on the market that I have re-habbed and considering keeping one of them to rent out. What is the best way to re-fi the property and get my cash out of it. The mortgage is about 45k and It will appraise at 150k conservatively. I would like to pay it off with a re-fi and get my cash out of it and keep the property. This would avoid any capital gain I believe and give me a good cash flow for my future. Any ideas or suggestions as to where to apply or other ideas for this property. I'm in south Florida. Standard BRRR strategy but not sure of the best way to re-fi and max the cash out. Thanks for your help.
Investor · Wilmington, NC · Member since 2013 · 276 posts · 169 votes
9y
Capital gain is an entirely different subject since you're not selling it. You're just refinancing. So it doesn't help you "avoid" them per se, you just don't have to deal with them today.
With an equity spread that large, you're in a good position with options. You can go all the way up to your max LTV and get a bunch more money out, or you can refinance a smaller portion and enjoy the larger cashflow each month. That decision depends on what your goals are. Good luck!
Investor · Wilmington, NC · Member since 2013 · 276 posts · 169 votes
9y
Capital gain is an entirely different subject since you're not selling it. You're just refinancing. So it doesn't help you "avoid" them per se, you just don't have to deal with them today.
With an equity spread that large, you're in a good position with options. You can go all the way up to your max LTV and get a bunch more money out, or you can refinance a smaller portion and enjoy the larger cashflow each month. That decision depends on what your goals are. Good luck!
Investor · Lake Worth, FL · Member since 2014 · 378 posts · 184 votes
9y
Ty for the response Turner. I would like to discuss it with you if that is possible. I'm looking for options and the best way to proceed. I'm in Lake Worth so not far from you. I belong to the Tropical REIA in Boynton Beach as well and have received a few options. I will send you a colleague request to get your contact information and set up a meet with you to get your requirements.
Real Estate Investor · Fort Lauderdale, FL · Member since 2014 · 158 posts · 100 votes
9y
Hi Charlie,
If the property is a single family home or small multifamily (2-4 units) I think your best option would be to get a conventional loan on it from a big bank such as Wells Fargo, BofA, etc. You can probably get 80% LTV, a 30 year term, and a very competitive interest rate. If you can't qualify for a conventional loan, then your next best option would be a local portfolio/commercial lender, but you might find the loan is too small for them. If that is the case you can then go to a private lender or hard money lender, but the terms will not be as good. Don't let that stop you though. You could work with a private lender for the short term (1-2 years?) if you need to improve your credit before getting a conventional loan on the property. Just make sure that whatever you do you run the numbers conservatively and leave yourself plenty of debt coverage, that way you will always have some cash flow. Good luck on this project!
Lender · Orlando, FL · Member since 2016 · 340 posts · 115 votes
9y
I could help with this as well. Do you know yet what they can rent for? A stabilized rental is much easier to underwrite for a refinance with most lenders.
Investor · Lake Worth, FL · Member since 2014 · 378 posts · 184 votes
9y
Rents here for a 2/2 SFH can easily be rented for $1200.00 off season. Thanks for reaching out. I normally do buy and flips but looking into the hold strategy for long term income.