Looking to restructure my investments and finances?

[Jill Drebing]

Hi all,

We currently own 6 SF rental homes in the Chicagoland area.  All 6 are currently rented out and we have owned them for a minimum of  18 months to 5 1/2 years.  Unfortunately, we've had some bumps in the road the past year with family health issues, flooding of a basement and loss of a job.  This has caused our financial cushion to dwindle and want to be proactive before it is completely gone!  Here is our breakdown-

one property on a stand-alone 20-year loan, 4.5% interest. Rent $1440, FMV $165, outstanding mortgage 94k. Great tenants, want to keep this one.

four properties on a business line of credit, interest only, the interest rate just increased to 6.5%. owe 200k, monthly payment around $1,074. All four properties we have owned more than 4 1/2 years. property values have increased dramatically since opening the line in June 2015. we were able to take a line of 219k which was 80%LTV. Now the 4 properties appraised at a combined value of 447k(about 49%LTV)

The 6th property we bought with the line of credit, so nothing on this one. FMV 126k, rented out for $1,400.

We need to either sell a few properties, which we really don't want to do or try and refinance with a cash-out refi on the 6th property or put individual loans on each property.  We are definitely stuck for the moment and need to move quickly.

Any suggestions?