Refinance of rental properties

[John Tran]

Hello BP Experts,

I have a quick question.

I want to pull out some equity from my 9 existing rentals. Each of them valued about 250K all paid off and cash flowing. First Carolina Bank of GA offer me a $750k LOC for 35 months (to avoid intangible tax of $2250 it need to be under 36 months) I need to find out what my option with renewing this LOC with them at the end of term, whether there will be more fees. Part of the deal is me moving my deposit accounts to them.

Here are the fees they proposed:

Loan amount $750K  Interest rate is prime flat.

Document prep fee $150

Loan origination fee $3750

Desktop appraisal with drive by inspection: $2475

Flood Determination Fee:  $81

Attorney fee:  $600  ( I work with this attorney often so I think his fee is good for this case)

Title insurance: $1613

Title review $765

Some other negligible fees.

My question is:   Is this a good term?  

thank you so much for any advices.

John

[Jay Hurst]

Quote from @John Tran:

Quote from @Jay Hurst:

Quote from @John Tran:

Hello BP Experts,

I have a quick question.

I want to pull out some equity from my 9 existing rentals. Each of them valued about 250K all paid off and cash flowing. First Carolina Bank of GA offer me a $750k LOC for 35 months (to avoid intangible tax of $2250 it need to be under 36 months) I need to find out what my option with renewing this LOC with them at the end of term, whether there will be more fees. Part of the deal is me moving my deposit accounts to them.

Here are the fees they proposed:

Loan amount $750K  Interest rate is prime flat.

Document prep fee $150

Loan origination fee $3750

Desktop appraisal with drive by inspection: $2475

Flood Determination Fee:  $81

Attorney fee:  $600  ( I work with this attorney often so I think his fee is good for this case)

Title insurance: $1613

Title review $765

Some other negligible fees.

My question is:   Is this a good term?  

thank you so much for any advices.

John

 @John Tran  I guess my first question would be what do you plan on doing with the funds?  

I am planning to use the fund to purchase more SFH rental units or put it toward new construction of SFH rentals. $750k would allow us to build 3-4 more units of 2-3 bedroom.

 Would the 750k be enough to pay cash for the properties or would the 750k be down payment funds? In other words are you looking to use the funds for short term use then a line of credit can be great. If using the funds for long term there are better options.