How to leverage the money blocked in properties

Question

I have two properties in St Louis MO that I own outright and I have been thinking of ways to not block off all the money I have in buying properties like this as I am reaching the end of my balances soon.
I do Airbnbs but am open to renting them out of there is a way to get cash out of the houses to invest in more properties. Hoping to get some meaningful guidance from pro investors on how I should go about maximizing what I have and build a portfolio.

Jeffrey Donis · Answer

@Rahul Gupta I agree with Account Closed. A cash out refinance would allow to utilize the equity you have in the property.

Account Closed · Answer

@Rahul Gupta it depends who your lender is, but generally speaking, they want you to have good credit. There are some lending firms that can give you a loan as long as you have a pulse, but they usually have incredibly high interest rates and fees.

Account Closed · Answer

Hey Rahul,

If you own your properties free and clear, you can tap into the equity by doing a cash-out refinance or by cross-collateralizing the properties to help you fund the downpayment for your next property.

Best of luck!

Daniel Johnson · Answer

@Rahul Gupta if you are using them as STRs, check out Visio Lending. They will do cash out refis on vacation rentals, so you wouldn’t have to change the use.

Rahul Gupta · Answer

Thank you! Do I need to have good credit to do a cash out refinance?