Reworking debt stack on 3 properties

[Ryan Z.]

Hi BP!  I have a bit of pickle I've been thinking over and wanted to know if anyone out there could kindly offer some guidance..

I have 3 properties as detailed below..  My short-term debt has me feeling a bit uneasy.  Wondering what the best solution might be..

Prop 1: Bought 2011, FHA 3.5% w/ PMI; MV ~185k; Loan Bal 92k; HELOC 36k @ 5% floating off Prime (drawn to pay for down pmt on other property); Rental (performing)

Prop 2: Bought 2014, FNCL 3.875% w/ PMI; MV ~ 260k; Loan Bal 173k; Rental (performing)

Prop 3: Bought 2018, FNCL 4.625% w/ PMI; MV ~440k; Loan Bal 356k; Owner Occ / Primary - Saving the detail, to get the deal I had to put up more down payment than I would have liked to... So I borrowed from my HELOC above^; and 17k from a short-term line I have at 3.99% thats due to expire next year (this I plan on paying in full before then)

I'm looking at my HELOC 36k @ 5%.. and based on a payment of 175/mo, it looks like I'll be paying for 39 years.

I know rates are now a good bit higher, but I'm wondering is a Cash-out refi my best play as of now? Of note, the 5% HELOC is floating off Prime and only going higher. And, I'm aware that the more I can put towards principal now the less interest I will pay, but I really cant swing too much more in monthly payments. Also, perhaps I can rid PMI and Cash-out to refi short term debt at the same time?

Any thoughts / advice?  Thanks as always.. BP has been a tremendous help.

Ryan

[Kevin Romines]

1) If you still live in the property that you bought using the FHA loan, I would cash out refinance to 80% via a Fannie Mae loan, for a loan amount of $148,000.00 with no MI.

2) I would take the additional 15-20K and use it to pay down the 3rd property you bought after having an appraisal to request the MI be removed. If you get a $440,000.00 value as you project, you need to pay the balance down to $352,000.00 

3) I would also ask the lender of the 2nd home you bought to just remove the MI, you will have to have it appraised, but it looks like you would have the 20% equity to allow them to remove the MI. 

If all works out as planned, you should still have $10,000-$15,000.00 cash in hand, lower payments on your primary and properties, 2 & 3 due to MI removals. 

I hope this helps?