Cash our Refinance dilemma

[Oleksandr Ivanovskiy]

I have a rental property I owe for over 10 years.

Current lender refused to do cash out refi since it’s investment property.

My two previous attempts to cash out refi would make the property into negative cash flow operation.

So I decided not to purse them.

The only valid option I can see is to do potentially 1031 exchange.

What do you all think?

Respectfully,

Oleksandr

[Chris Choe]

@Oleksandr Ivanovskiy, a traditional cash-out refinance using a conventional loan product for an investment property, is limited to a 75% LTV and the rates are very unfavorable after the loan level pricing adjustments to these scenarios at the end of 2021. Your best current option to extract equity out of your investment property is to explore a HELOC as a 2nd lien on the property. We have an investor that allows up to 90% CLTV HELOC for 2nd homes and investment properties - the main sticking point being, we are only licensed in 15 states so it would depend if your investment property is within those 15 states. Otherwise, I can try to find someone to direct you to.