Trouble Finding Lender to Refinance Rentals

[Daniel Ramirez]

Hey BP Community,

I'm looking to add a multi-family (duplex or triplex) to my portfolio.

I have a total of 3 single family rentals that are free and clear. Property 1 has a market value of $85k. Property 2 has a market value of $95k. Property 3 has a market value of $65k. 

I'm having a very difficult time getting some of the equity out to fund the purchase of a multi-family. The reasons are as follows: 

- LTV of 65%-75% would result in a total loan amount that is below the minimum loan threshold.
- The closing costs/fees would result in a total cost to loan ratio that is too high, making the loan not compliant

- The couple lenders that will refinance some equity out will not bundle the properties, generating sizeable closing costs for each of the 3 loans.

- One commercial bank I've spoken with will bundle all three properties into one loan, however will no approve me due to debt to income ratio; I have a mortgage in my name for my father in laws house (he pays mortgage and resides there) so they see the debt but no rental income.

- Hard money will do the loan but with rates at above 8% with sizeable origination fees and significant pre-payment penalties.

I was hoping some of you seasoned folks could help me figure out some creative financing solutions for this little conundrum. :)