Cash Out Refi

[Tracie B.]

Wondering if anyone has experience with doing cash-out refi's on their rentals?  I have received so much inconsistent information about our options as far as doing a cash-out refi that I don't know which information is accurate...Can you do a cash-out refi if you own 10 financed properties and what about if you own more than 10 financed properties? Some Loan officers say none at all, some say only if you only 4 or less, some say 10 or less.  Very few say you can do 1 if you own more than 10 unless its a portfolio loan or a specialized lender where the rates will likely be substantially higher....Does anyone have straight (and accurate) answers on this??  Thanks so much!

[Charlie Fitzgerald]

Conventional financing will be difficult. A commercial portfolio loan will be achievable if your properties are cash flowing sufficiently to cover the DSCR at whatever percentage the lender you go to requires and your reserves are deep. Depending on your reasons and need for the Cashout and the intended purpose for the cash, a hard money loan might be a viable option, even though the interest rate will be higher. The ease with which you can get to your cash in the later case, will be much more bearable, and the numbers not astronomically different given that a loan from a hard money lender will be interest only. Again, it comes down to need and purpose and pain points.

Hope this helps.