What are my options of doing Cashout Refi after owning 8 rentals?

[Manson C.]

I currently own 8 rentals and I want to do cashout refi on one of them. My lender told me that I can no longer do cashout refi via conventional loan if I own more than 4 rentals.

What are my options? Can I do cashout refi using a non-conventional loan / portfolio lender from a regional bank? What does the rate / term look like? Thanks.

[Jeff Kehl]

@Manson C. You should be able to cash out on 1 or more of them from a local bank or credit union. It will be commercial financing so make sure you're talking to the commercial lenders. Terms I typically get are 5 year term with 20 year ammortization with a rate around 5% or a bit less here recently. They have lots of different options with longer or shorter terms and ammortizations. The Loan to value will probably be 70-80%. It all just sort of depends on the bank, the customer and the property. If you have other business relationships with them or can show them you intend to it will help.

You can also go to one of the newer Hedge Fund type lenders like B2R, Dwell or Firstkey. They even have 30 year fixed products at a slightly higher rate. My experience with trying that wasn't positive though so I prefer the local banks.