Portfolio Loan: Cash-Out Refinance?

[Aram V.]

Hello BP Peeps!
I'm a newbie to real estate investing and would appreciate any knowledge you can share. I bought a single family and duplex in the past few months and would like to apply for a Portfolio Loan: Cash-Out Refinance on both Properties. I called a handful of local banks. Flagstar Bank called me back and sounded enthusiastic about lending me the $. 

Two Questions:

- Does anyone have any experience with Flagstar Bank? 

- Is it wise for me to ask for a Cash-Out Refinance Loan? I'd like to buy more properties and use some of the extra funds to pay off the loans on these first two properties

[Brian Garrett]

Is there a reason you need to bundle the properties together in a portfolio loan?

You will get more favorable terms/rates through a traditional cash out refinance.