Skip to content
×
PRO
Pro Members Get Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
$0
TODAY
$69.00/month when billed monthly.
$32.50/month when billed annually.
7 day free trial. Cancel anytime
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
Creative Real Estate Financing
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated 3 months ago, 08/19/2024

User Stats

4
Posts
2
Votes
Ryan Prange
2
Votes |
4
Posts

Should I get a business loan to pay off 2 houses?

Ryan Prange
Posted

I have 2 long term rentals both at 7.5% interest rates.

1. estimated value: $950k, outstanding mortgage of $574k

2. estimated value: $900k, outstanding mortgage of $514k

#1 cash flows nicely for me at $2500/mo, but #2 leaves me at a $400 loss each month, mainly due to the interest rate. I'm wondering if anyone has any creative ideas for how I could consolidate 2 loans into one that MAY have a better rate. I have a good income and credit score. My loan broker tells me to not even think about 15yr mortgage (i don't know why?). So I'm wondering if I was to get a business loan based on the rental income of the properties and secured by the properties themselves. Is this a thing? I'm still new at this and I own the houses in the name of my trust, I haven't set up any sort of business entity for them yet. I'm happy to pay someone's consult fee if they can help me towards refinancing to a better rate that helps me cash flow on both properties. Thanks BP community!

Loading replies...