I have 8 rental and want to refinance need suggestion, thanks

[Kevin Jones]

Hello,

I heard that you can only finance a max of 10 rental properties under the current guild line.  I currently have 8 and would like to take some of them and refinance under a business mortgage to free up some room for future purchases with normal financing.  Is it worth do that?  Also, would it be better to get individual new mortgages or group a few or more into one business mortgage?  I have 5 of them in the same location so I wouldn't mind grouping them since I don't see myself selling them any time near future.  Any suggestion on which commercial mortgage company to go to refinance and what to look out for?  Any input and suggestions would be appricated.

Thanks,

KJ

[Andrew Postell]

@Kevin Jones the short answer here is NO - it will not be worth doing.  Now for the explanation on it.

If you refinance all of your properties - you pay closing costs to get that commercial property.  Then you pay closing costs again when you purchase a property with your "conventional" loans.

Or you can just keep your current "conventional"  loans and just use a commercial loan when you purchase your next properties.  Then you pay closing costs once.

Either way, you will need commercial/portfolio money pretty soon.  This is a normal thing.  No need to pay closing costs twice though.  I hope this makes sense.