Need advice on financing

[Tom C]

I am currently trying to pull some cash in order to make another acquisition and I have a dilemma on which way I should go. Keep in mind when reviewing the numbers, that the next acquisition will be another rehab and hold for rental and will be a cash deal adding to my total cash flow.

Option 1 only refi one property all notes in personal name.

Clear title currently

1. SFR - Appraise value 53,000 pull 35,000 @ 8% 30 yr fixed P&I $256 current rents $550

Other notes currently

2. SFR - Appraise value 54,000 note 35,000 @ 6.78% 30 yr fixed P&I = $227 current rents $600

3. SFR - Appraise value 64,000 note 45,000 @ 7.5% 30 yr fixed P&I = $314 current rents $600

Under Option 1 if I simply pull 35K out of SFR 1 and leave other notes standing, my total monthly payments would be near $800


Option 2 with different bank

1. SFR 2 and SFR 3 (Will not include SFR1 due to less then 1 yr seasoning) into a business loan for a total new loan amount will be $112,000 @7.5% 30 yr fixed cashing out $30K for a total monthly payment of around $785.

Pros and Cons with Option 1

1. New loan is again in personal name
2. Rate is extremely high for a conventional loan.
3. All 3 properties leveraged equally.

Pros and Cons with Option 2

1. Finally able to obtain a business loan freeing my personal credit
2. Still will have a clear title on SFR 1 to leverage later
3. Now SFR2 and 3 are really over leveraged.

Give me your opinion on which route you would go or even if you think that I am over leveraging these properties and possibly getting myself in trouble. Now is the time to buy, so I feel that I need to make as many acquisitions as possible.

Thanks