Refinancing in Alabama in a rising rate environment

[Darrell Bratton]

I have been buying like a drunken sailor for the past two years because of low interest rates. I had four loans at various interest rates under 5%. They were 5 year arms with 15 year amortizations because I went with the one lender that started me out. I just refinanced (two of my portfolios) with All In Credit Union for a 10 year Arm and a 20 year Am. This is for people who have the properties in an LLC. The terms are better if you hold the properties in your own name. My properties are typically below 100K so I could not get the 30 year fixed with anyone. When I refinanced at 6.75, I had so much appreciation, I was able to pull out two properties free and clear and lower my monthly payment to increase cashflow by 250.00 per month. The beauty is that there is no minimum property value for the loan, unlike the DSCR loans that I have been trying to get. I have never owned rentals free and clear. I am going to get a Heloc on them and buy more. I am in the perfect position to buy as housing prices start to come down. I am back to being a drunken sailor :)