The ability to make a positive difference in my community by striving to provide clean, safe, affordable, comfortable and quiet housing for responsible renters.There is a severe housing crisis in many parts of the country.

Way to keep it positive though, I'll bet that place will look fantastic after to renovation.

Both of my properties have existing mortgages in first position and the existing first mortgage lenders are recommending a cash out refinance. 

Hey @Robert Montenegro, i never repaired anything , it is fully furnished and well maintained and built on 2003.

If you are cash flowing positive without paying 100% cash, then you are not paying the added $150k + 65% interest...your tenant is.When you buy a cash flow property, the cost to you, is what cash comes out of your pocket...and your tenant pays the rest...as long as you are CF positive.When you pay $30 DP, and finance the rest, those two properties cost you $30kWhen you pay $150k, and eliminate the loan, you are paying $150k for these 2 properties....and, you have eliminated any potential to buy anymore since you are no longer have any money.

I pour all positive cashflow back into the heloc as my W2 covers all living expenses. 

The dangers of both options are obvious, and who knows when, or if, we will get back to the cap rates we have seen in the past.Just my perspective but I have maintained my minimum return requirements while exploring some additional options. 

@Daniel Rosado If I was in your position I would partner up with someone.

Rehab funds are released in draws so as work gets done and inspected the funds are releasedHence They will never be a position where they are lending more than the property is worth 

1) I know private lenders that will loan to an LLC (Lima 1, Colony Finance, etc), but not in second position.