Need to refinance an investment property to get rid of hard money rates and pull some cash out. Details: I owe $116K, I have two appraisals for $175K. Property has a tenant in it, paying $1100/mth. Current rate is 14%. I would like to refinance at a lower rate and pull some cash out, preferably at 80-85% LTV. Credit score is low 500s, (due to maxing out all credit cards to rehab homes). Can anyone refinance this or point me towards someone who can?
By my calculation, you are paying $1,311.78 interest to lender every month. Not adding tax, insurance and maintenance cost. You are way into negative cash fallow. How long do you want to be in red?
I would sell the house. You are not gaining anything by refinancing.
Cause with your credit history you end up with another hard money lender.
Syn.
I have to agree with Syn. I typically buy one house to flip and then I buy one to hold for a rental. It is slowes down the acquisitions but it will help improve your credit. Banks don’t quite understand what you are doing. This will allow you to show income from the sale of the house to show bankers that you can do this.
My credit is in the low to mid 620’s and my wifes is about 670, so we have using her credit to to refinancing. We should be able to push hers over 700 after we refinance our next house. Then we can start on improving my credit.
Best of Luck!
NDI