Cash Out Refinances on Rental Properties


29 Replies to “Cash Out Refinances on Rental Properties

  1. I have a rental house that I totally paid off. I would like to get a HELOC on that property, so that I can then go buy property with you. Do you know of any banks that would be willing to give my a 1st position HELOC on my rental house?

  2. Hi Clayton, my name is jonas and I am 26 years old. What would be your advice for me to start real estate investing, I have 22k in savings, and I keep watching your videos about buying single family homes but, you make everything seen like it's easy but it's not lol, my dream is to get 4k passive income, I just don't know how to start, I don't want to mess this up in a bad deal, I am tired of the 9-5 grind.
    I would be happy with 4k passive income.
    Greetings from NJ.

  3. I have 3 rentals average value 50K each I receive $1,050 per month per unit after expenses I take 600 per unit a month. your thoughts on roi and getting a loan to add one more rental I could putt the money sideways to pay it off faster your.. your thoughts please Atlantic County New Jersey here

  4. Thank you so much for creating these videos, they are very helpful. Have you answered or done a video on how to make money on real estate in a down economy?

  5. FANTASTIC! I've been wondering about this topic for sometime. Thanks for sharing how the snowball effect works. Do you have any recommendations on portfolio lenders? I have 5 properties I'd like to bundle together, cash out refi and acquire a couple/few of your properties. thanks again!

  6. Thanks for the quality videos. It's helping my wife and I a lot with the info we need to start buying rentals. I bought a house for myself 9 years ago and when I left for the Marines I ended up renting it although it wasn't the initial plan. We about to sell for a substantial profit. We were looking to stay in Mass but you opened our eyes to what we can accomplish buying out of state. What states would you recommend buying in for long term rentals? Would you recommend single family or multi? I've seen some of your videos where you mention wanting to only be 40k into the property. Multi family homes around here go for close to 500k and not the best cash flow. At 40k a house total cost I can buy at least 3 outright and it would be equal to our 20% down near Boston. Your advice would be greatly appreciated by my wife and I. Now that I watched this video it

  7. Clayton, does it matter if the property is held in an LLC or under an individual's name – in other words, which is preferable to banks when considering a cash out refinance?

  8. A couple additional points- the bank likes it much better if your tenant has been there at least a year. Also, while the cash flow is a plus, they still want a property in excellent shape, and still require YOUR credit and debt-to-income to be good, to know that if you should have no tenant you still have the ability to pay the monthly amount.
    So while it may be easier to get a cash out this way, it's still the same rules. Banks are very conservative.

  9. Hey Clayton, can you make a video explaining how you make money doing this snowball technique? because it seems like you will have more loan payments instead of extra money

  10. Thank you so much for all the great information! You mention, "they're going to look at the asset itself and care less about you the investor/person that's paying it back." My question is, how much less? I'm a self-employed, non-w2 earner (for the past 3yrs), that brings in approx. 50-55k (wayyy less after deductions), with a 611 credit score (according to creditwise). Will any of that come into play or will it be more about the performing asset?

  11. Have been consuming your videos for the past week. So much awesome info. My question… say I purchase a property from you at an all-in price of 40k – cash. Now I own the property outright. And say, after the renovation, the property appraises for 50k. I put the property in an LLC, just like you guys, and I'm off to the races. Now, my big question is what are the odds of me doing a cash-out refi on this property to try and get that 40k back in hand in order to snowball to the next? A HELOC would be better, but my real question is, how likely is it that I can get really close to getting that 40k back from the house in order to snowball? If you're saying this is feasible, then you, sir, have just made my day.

  12. Clayton, can you do a cash out refinace on a home that you paid cash for and dont owe a mortgage on it? If yes can i do a cash out on that property to get a 3rd property? Thanks for all your videos, love them!
    -Drew

  13. suppose I get the refinance of the first house (without mortgage), how long is it advisable to take out that loan? to reinvest in the next property? assuming my plan is to retire within a maximum of 12 years I would appreciate your advice

  14. Clayton, I don't have much capital to go buy a property at the moment, is it a good idea to set up my LLC and take out a business loan to purchase properties with? And then perhaps refinance the properties that I bought and purchase more properties?

  15. Question, if i do a cash out refi and receive money from the bankand deposit in my llc, that counts as income correct?

  16. I think this is a good video but I like HELOC with this scenario. Cash out refinance is a mortgage and a line of credit is a better option.

  17. im a bit confused. supose you own 3 properties free and clear..and you do cash out refi why would it be a mortgage if they are paid for already?

  18. You forgot a major major part that complicates this… they look at your whole financial profile. Require 2 years tax return and consider your whole picture not just the property. I own one free and clear good tenants for over 4 years and banks are heavy on the rest of my business profile including my primary residence and mortgage e.t.c

  19. Banks like it because they make money off of you because of all the interest you going to pay they have a secure lien against the property so if you don't pay to get the money let me get the house

  20. Hi Morris, if you’re running a multiplex as an Airbnb full time, how can you position the property to sell them on a cash refi for it?

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