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I have been leveraging for a few years now and have managed to get a few mortgages on investment properties. All the properties perform very well, are income producing and have at least a 60-80 percent LTV ratio depending on the property.

For a few reasons, having to pay multiple banks each month, limits on how many mortgages you can have, complexity, I have decided that I want to explore rolling these all into one.

So my question:

Is there a way to take multiple investment property mortgages and refinance them all into a single mortgage? The current mortgages are a mix of VA and conventional. With interest rates ranging from 3.3% to 5.5%

  • Do you have an LLC associated with these properties? – Nosrac Feb 14 '18 at 17:58
  • @Nosrac no, I wanted to but I was told that my LLC would have to qualify for the mortgages and that it wasn't beneficial as most think. I don't know if that's true or not – Anthony Russell Feb 14 '18 at 17:59
  • I don't imagine you'd have an easy time consolidating mortgages, but you could leverage equity in one property to pay off the mortgages on others. – Hart CO Feb 14 '18 at 18:19
  • @HartCO that's not a bad idea. I would say a cash out refinance but unfortunately the properties with the best LTV have the lowest interest rate. A refinance would mean losing that rate and taking on a bigger payment. I'd need to calculate if the increased rate was less than the interest on the two mortgages – Anthony Russell Feb 14 '18 at 18:21
  • A portfolio loan might be a good opportunity to move your properties into an LLC. Depending on the bank/credit union it might be required to form a new LLC and transfer all properties into it. do-portfolio-lenders-usually-only-do-bundle-loans – JaredStroeb Feb 14 '18 at 18:53
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The short answer is yes. You could approach smaller local banks and credit unions and see what options they have for portfolio loans. However portfolio loans typical need more down and carry a higher interest rate. The terms will also be different from your current mortgages I would expect 5-7 year terms with a balloon.

Looking to see what is available to is a good idea but the complexity of multiple low interest loans with long terms might be better than one higher mortgage payment with a looming balloon payment.

  • If only there was a way to use a little money, to borrow a lot of money, to make more money and have it wrapped up in a single, low interest loan.... One could dream I guess – Anthony Russell Feb 14 '18 at 18:53
  • FHA loan (or other low down payment option) on an owner occupied multifamily? – JaredStroeb Feb 14 '18 at 18:57
  • I actually started with an FHA loan and refinanced it into a conventional loan to remove PMI on one of the buildings – Anthony Russell Feb 14 '18 at 19:24
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    I am living in a duplex 5% down on a conventional with a 5% piggyback loan no PMI from a local credit union. I was planning on an FHA when I found those terms which turned out a little better. – JaredStroeb Feb 14 '18 at 19:28
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I have done this and it has saves paying fees on each different account as well, just need to track how much of the lending is allocated to each investment so you can track your profit for your tax return.

  • Can you please expand on how you structured this? Did you approach banks or private investors? – Anthony Russell Feb 16 '18 at 13:29

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