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Refinancing a Rental Property - Private Money Advantages

Portfolio Mortgage Lender Building and overseeing a successful portfolio of rental properties requires more than just sitting back and collecting your tenants’ monthly checks. In order to grow your rental portfolio, you need to plan for cash flow, reserves, and how to plan for you next acquisition.

As you understand these factors, and become an expert in your local market, you will certainly understand working with a creditable, Private Money Lender, as Rental Home Financing is an invaluable partnership in order to help yo u expand your rental business.

If you are able to demonstrate income on a federal income reporting level, meaning willing to show personal tax returns to traditional bank lender, you might be able to locate a better local solution for you however, not every savvy investor is able to as you get closer to financing 10 or more rental properties, you will find yourself as hitting a limit to the maximum number of properties allowed by traditional lending banks and government sponsors.


Oftentimes, the easiest way to do this is to simply refinance a rental property using private equity.

5 Reasons to Refinance Your Rental Property Using Private Equity

As a rental-property investor, you’ve invested far too much time and money in your home to not regularly see the returns you deserve from your portfolio.

While there are many single family financing options that can help you optimize those returns, one of the best may be simply using private equity to carry out refinancing. You’ve spent years building up that equity, so why let it sit there when you could be using it to improve your portfolio’s returns?

In fact, there are actually five specific reasons you should refinance your rental properties right now by using private equity.

1. Take Advantage of the Current Market

This year, 2019 may be the best opportunity we’re going to see for some time to refinance a rental property, especially if you intend to use those funds to increase the size of your portfolio.

With experts predicting housing prices will continue to climb in 2019, now is the time to expand your portfolio. Of course, as those home prices begin increasing further, it’s only a matter of time before the market starts seeing a significant uptick in renters, as well.

If you’ve built up equity throughout your investment portfolio, now is the time to take advantage of it by using that money to refinance and increase your holdings. That way, you’ll be ready when all those new renters are looking for houses.

2. Spend the Money on Necessary Improvements

If you have properties that are in disrepair or would simply benefit from a little maintenance work, that would be another good reason to look to refinance a rental property right now.

Depending on the level of work the home in question needs, you may be unnecessarily struggling to find tenants or unable to charge the rent you potentially could simply because they don’t compare well to other homes for rent in the area.

In any case, neither are favorable conditions when you’re trying to optimize the profitability of a portfolio.

This is an even bigger potential problem given the aforementioned market conditions. Before an increase in renters begins flooding into your geographical area, now would be a good time to refinance any rental property with sufficient equity and then use those funds to cover any improvements they need.

3. Improve Your Portfolio’s Rates of Return

If you haven’t checked the current value on your properties lately, you may be surprised to learn how much more some of them are worth since when you purchased them. You’ve no doubt increased your equity in those homes since that time, as well.

In that case, there’s a good chance you’re not realizing the returns you could because of how much equity remains tied up in your rental properties. There’s literally no good reason to continue allowing your equity to stay locked in those homes when you could pull funds from them to either pay for repairs or purchase more properties, both of which would dramatically increase your rates of return.

Again, it’s better to do that now while the market is still in your favor than in a couple years or so from now when you may have missed a golden opportunity.

4. Enjoy Greater Cash Flow

If you’re like most investors with a large portfolio of rental properties, keeping an eye on cash flow is a constant priority. Any properties resulting in a negative cash flow must be addressed ASAP. Obviously, this is not the type of problem you can afford to see in numerous properties.

That’s why seasoned landlords know to stay on the lookout for common cashflow detriments like vacancy, bad tenants, poor property management, and even potentially limiting insurance coverage.

However, what far too many rental-property owners don’t think about is how refinancing with private equity could open the floodgates on their portfolio’s cashflow. Refinancing would mean longer amortization schedules and significantly reduced interest rates. These two changes, alone, are worth refinancing.

5. Optimize Your Portfolio Management

At a certain point, a rental property portfolio can become so large that managing all the different payments required by each mortgage practically becomes a full-time job.

This is another reason many owners refinance their rental properties by using blanket loans. By utilizing this unique form of lending, you can put numerous mortgages under the “blanket” of just one loan. Aside from the fact that a blanket loan could help you release trapped equity, this type of refinancing would also mean making a single payment every month as opposed to many.

Furthermore, a blanket loan covering numerous properties would also increase your purchasing power because of all the combined equity from all those different homes. Again, you could also use those combined funds to carry out any renovations that may currently be hindering your portfolio’s earning potential.

Refinance a Rental Property Now and Take Advantage of Private Equity

Are you seeing the highest possible returns from your rental property portfolio?

Or, are you sitting on untapped potential because of private equity you’ve amassed over the years?

If it’s the latter, then now’s the time to refinance a rental property and take advantage of that private equity. You’ve worked hard to build it up. Why not put it to work, so it can start paying you back with greater returns?

At Rental Home Financing, we specialize in helping investors who already own numerous properties or looking to invest for the first time and need help from a lender so they can continue purchasing more.

Contact us today and let’s discuss refinancing one or more of your rental homes, so you can improve your portfolio right away.

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About Rental Home Financing:

Rental Home Financing, as the best mortgage lenders we originate rental home loan products and cash out refinance investment property loans as the best investment property refinance lenders. Commercial blanket loans are available with a commercial purpose to suit your needs.

Also, as DSCR loan specialists, we are currently authorized to make such loans in most all areas of the United States. Specific circumstances will determine whether we have the ability approve/close portfolio rental home loans in your state(s). When you are ready to get a mortgage for rental property, we are ready to serve you.

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