Vero Beach, FL
By word of mouth, this investor found an opportunity to add two more off-market properties to her rental portfolio. The issue? She needed some cash on hand for down payments and liquidity requirements.
To accomplish her goals in the most efficient way possible, we leveraged one of her properties into a 30-year, fixed-rate refinance with cash-out. This kept her monthly payments low and allowed her properties to still cash flow. She then used that cash to purchase two homes: one that she kept to add to her rental portfolio and one that she plans to fix and flip. When all is said and done, she will recoup her entire principal — plus own an additional rental property and make a profit!
Maintaining a positive cash flow when refinancing in this market can be tricky! The three best ways to do this are to:
- Put a little more money down (this means there’s less of a loan to pay off = lower monthly payments)
- Choose a Hybrid Loan – which affords a lower payment in the first 3,5,7 or 9 years (depending on your choice) while riding out the changes in interest rates
- Don’t over-leverage (try backing the leverage down by 5% and see how that affects the rate!)
In this market, smart investors are looking for off-market opportunities, fixer-uppers or distress properties. That is why you MUST be ready with cash – because you never know when the right opportunity will fall into your lap. If you’d like to explore your options to do a cash-out refinance on your investment portfolio, then try our Loan Finder tool or call us at (888) 959-1648 today. There’s no risk or obligation to explore your options!