Utilizing equity - B2R?

[Marvin Meng]

Hi, I own two single families, a duplex and a fourplex in Southern IL (STL area). The two single families I've had for several years - the other two were purchased in December. I'm interested in taking out a line of credit leveraged against existing equity for new purchases. My understanding is B2R will lend against cash flow. Either way would be fine. Lacking other data I'd go with whichever gives me more money with which to work.

That said I'm very risk-conscious. If the number at the bottom of the spreadsheet isn't black that's a non-starter. But I don't mind (lots of) leverage if I'm doing something positive with it.

My question: If this were your situation how would you proceed? I'm talking to local banks (whom I've worked with before) and they're pointing me toward traditional lending. I'm also looking into B2R. I'd love any suggestions about lenders and/or strategies. My goal is to balance aggressiveness and risk in growing my portfolio.

Thank you!!

House 1

Est Value: 90000

Balance : 61000

Equity: 19K

Cashflow to date: 4000

House 2

Est Value: 110000

Balance: 70000

Equity: 40K

Cashflow to date: 2400 

Four plex and duplex (bought together)

Est Value: 280000 (this could be more – We’ve raised the rent in three units and gross rent is 47400)

Balance: 222000

Equity: 58K

Cashflow to date: 5700

Total equity is 117K