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Updated almost 6 years ago,
Cash-out refi of rental property
I asked a broker to quote a refi for one of my properties both as a rental and as a primary, to see what gives. The only difference was the interest rate on the rental was 62.5bps higher. I was anticipating a higher rate but was caught by surprise by the spread, which I guess implies a considerably higher risk...
I understand during bad times an owner will walk away from a rental property before a home. On the other hand a rental offers additional income (not guaranteed, of course).
Curious if there're better ways to go about this. Are there specialized lenders for investors out there? Would presenting the lease agreement help out? Market stats re dom?