I am considering paying off 3 of my smaller loans with one of my paid off properties. The total amount of rents generated from those 3 rentals is 2,900 minus payments of 1,900,This lender doesn't escrow. The total balance on these properties is 142,543. I currently have a paid off property valued at 175,000. I am considering speaking to my lender to get a loan off that paid off property to pay off those small loans. I was using a mortgage calculator and even with a rate of 7.75 my payment would be around 1,200 or so roughly. I would increase my monthly cash flow. Plus I would have 3 paid off properties to use as leverage if needed.Am I missing something with my calculations. Has anyone done something similar before? Any thoughts or advice would be helpful, thank you . --184.93.xx.xxx

Others will tell you mortgages are protection against lawsuits. --73.216.xxx.xxx

my thought is how far are you into the loans, i wouldnt refi a paid off house to pay off 3 that might be 18 years into a 30 year note.they will pay themselves off --165.227.xxx.xx

I am 4 to 5 yrs on the loans on a 20 yr note. --172.56.xx.xx

I would do that for sure. --172.56.xxx.xx

You can make a property look encumbered - less appealing to someone who wants to sue you - by getting a HELOC on its equity. You don't need to actually take any money out, but it is very handy if you ever do need some fast, for an emergency. --72.218.xx.xxx

I no longer like having loans and don’t really want more property. I say that and then a great deal pops up. --162.204.xxx.xxx

Is the new rate that much lower the existing rates? How much will you be charged to take out the new loan? Would you rather have a little cash flow now or more later? --174.220.xx.xxx

If you will be paying a lower interest rate then it may makes sense. If not, save that idea until you need to redeploy the equity into a new acquisition and then you can cash-out refinance. --99.64.xx.xx

--47.156.xxx.xx

Is anyone doing HELOCs on rentals? Penfed stopped doing them on non owner occupied. --64.246.xxx.xx

Because there is so much equity in the system, money isn't working as hard as it should. It is sad as I don't see much change in the near future. --173.188.xx.xxx

You can get lulled into a false sense of security too. On a site like this having two places for example might not seem like much. But in your neighborhood, do the majority of people have more than one house? That makes us get perceived as being UBER rich. We are far from being uber anything except in debt. Being in debt and having debt work for you isn't a bad thing, providing the properties are clearly cash flowing. Inflation can work both ways - making your assets more valuable while devaluing your long-term fixed debt. I don't expect to see the economy to make any sudden changes anytime soon. Debt might be a good idea --173.188.xx.xxx

I can also just let it be there, unused, except to show up on a title search. --72.218.xx.xxx

Thanks for everyone's time. --172.56.xx.xxx

Not thinking it will happen, but thanks for the push from your post. If they do it I am sure it will be double digit interest, but if it allowed me to sneak in and snag a place fast it would be worth it. --47.227.xx.xxx

Good luck - go up the chain a little, to find someone who really knows. --72.218.xx.xxx

My cash offer is typically only about $8,000 less than my bank financing number. It cost me about $5,500 to do a second closing if I pay cash, so I want to make an extra $2,500. Why three offers? If I was going to get a major construction job done, I would want multiple quotes. If one contractor would give me three quotes - that sends out a clear message. I want to send out that clear message --98.17.xx.xx

--47.227.xx.xxx

(That "might" have something to do with my deposits there, not sure) --72.218.xx.xxx

--47.227.xx.xxx

--65.188.xxx.xx

--65.188.xxx.xx

zero- do you know a hard money lender? 1 call i get the loan, yes i pay for it but when needed it is there --165.227.xxx.xx

Also need to look into the HELOC encumbering the property. I wasn't aware that those showed up as such. That would be an added bonus for places owned outright. --47.227.xx.xxx

Sounds like a good idea to me, and when rates eventually do fall you can refi at a lower rate. --32.218.xx.xxx

If I needed the money I would just do a cash out refi. Sure, once I got the HELOC set up I would have access to the money when I wanted it, but all the up front costs for something I might not use doesn't sit right with me. --195.242.xxx.xxx

To me, this is first a math test problem. I'd write down (I like a yellow tablet) the details of all four loans in four columns and amortize everything. Bottom line will show what is the best monetarily. Then, work those numbers into your life situation/goals. Doesn't necessarily mean the best money deal is the best for your life but it gives you the options --174.55.xxx.xxx