So how exactly do you do this? Do you have to refinance? What are the options?
You could refinance, but how much you’ll be able to access will depend on their LTV requirement’s and the appraised value of the property. You may be able to refinance at 80% LTV. Whatever is left after you pay your old loan off and closing costs, is what you may be able to “cash out”. If you take on debt, be sure the property will cover the added debt and still cashflow.
I am in the process of obtaining a loan on a 4-plex. The bank will only finance 80% of the tax value. So I will end up with a 52K loan on a property that’s bringing in 1779/mo.
If I had 2 years of tax records proving rental income, then I’m sure i would get more.
Thanks for the response. It looks like I do not have enough equity at this time for it to be worth the trouble.