Refinance to Conventional or Portfolio Loan?

[James Letchford]

I'm coming to the end of my 'seasoning period' on my first BRRRR. Everything has gone very well so far. I.e., I have plenty of equity in the property to pull out my entire cash investment, and probably a little more. I'm looking to replicate as soon as I find another great deal.

Here is my question:  Should I refinance this property into another conventional mortgage or into a portfolio loan (if I can pull it off)?

A couple considerations:

• My family is considering a move in the near future, so I'd like to have any rental properties I own off of my credit and in a portfolio (possibly under my LLC).
• My rentals are a longer term play, so I don't necessarily need the cash flow from them in the immediate.
• I hope to leverage the portfolio I build into bigger moves.

Thanks in advance for any input.

[Andrew Postell]

@James Letchford I would certainly recommend speaking with a mortgage professional in your area about your next moves.  I would also state that if you are just starting out it would be likely that even a portfolio loan would be held against you.  However, it shouldn't matter since the income from your investment property should also be used.  So your income will counterbalance the mortgage payment.  If you are refinancing your property I would recommend refinancing into a conventional loan because your terms will be significantly better.