Financing Sfh Vs Fourplex

[Tony Dinh]

I am looking to do some financing to build on one of my vacant lands. I wanted to get some input on what would be the best way to get financing. Should i do a heloc or cashout refinance. I own a paid off SFH investment property and also a FOURPLEX investment property that is also paid off, would it be better to cash out refi or do a heloc on the SFH or FOURPLEX. Or is there any other way to acquire financing that would be a better option to do deductions and write offs.

[Brandon Croucier]

Hey Tony,

None of those are bad options, honestly if you have paid off investment properties; the best terms are probably going to come straight from a cash out refinance.

Line of credit is a good option due to only paying on what you use but if your planning to start construction immediately I would go with the cash out, its going to be less headaches as well.

[Tony Dinh]

Quote from @Brandon Croucier:

Hey Tony,

None of those are bad options, honestly if you have paid off investment properties; the best terms are probably going to come straight from a cash out refinance.

Line of credit is a good option due to only paying on what you use but if your planning to start construction immediately I would go with the cash out, its going to be less headaches as well.

Both of them are paid off; but I herd the fourplex might be at higher rates since they look at NOI instead of LTV?

[Brandon Croucier]

Quote from @Tony Dinh:

Quote from @Brandon Croucier:

Hey Tony,

None of those are bad options, honestly if you have paid off investment properties; the best terms are probably going to come straight from a cash out refinance.

Line of credit is a good option due to only paying on what you use but if your planning to start construction immediately I would go with the cash out, its going to be less headaches as well.

Both of them are paid off; but I herd the fourplex might be at higher rates since they look at NOI instead of LTV?

 No thats incorrect, the 4-plex will have a bit of a higher rate but it wont be much.

Anything 1-4 Units is pretty similar in pricing.

We look at DSCR on both property types.

[Alex Bekeza]

@Tony Dinh Usually the LLPA associated with a 2-4 unit (vs. DSCR) on a cash out refi is only like 0.125% to 0.250% max depending on the specific program. Either way, I'd leverage them both and keep scaling ;)