2018 Home Equity Loan VS Portfolio Lending

[YiBing T.]

Hello all, 

I have two properties in Baltimore MD that I am trying to do cash out refi so that I can purchase another rental property. The two properties are valued at around 75k and 65k with no mortgages on it. I have done some research on the refi cost: APR and closing cost are higher because the low loan amount. Some people advised me to look into portfolio lending.

My goal is to do BRRRR. I'd like to get your opinion:

1. For these smaller size loans, what would be a good method to do Refi? Is it a better option to go with portfolio loan?
2. When would be the break even point for investors to switch from traditional home equity loans to business portfolio loans?
3. Any suggestions on lenders that you can help recommend? Portfolio lenders or HEL? 

Thank you very much in advance

Yibing

[David Fernandez]

Hi @YiBing T., I worked with a couple of banks in Baltimore City that service these types of loans. One is Revere (recommended by @Ola Dantis) and the other one is Eastern Savings Bank. 

They offer similar, but slightly different products based on how long you've held the properties, term, maturity, rates, LTV, etc. If you are interested, send me a PM and I can refer you to the guys I work with (not sure about the forum rules whether I can or not put their names here publicly)