Do you have a large portfolio of rental properties?

If so, it’s important that you make the most of those assets. One of the best ways to do so is by refinancing, so you’re able to add to your portfolio even further. Specifically, now would be a great time to use a vacation rental property loan for refinancing purposes.

Don’t wait to refinance with a vacation rental property loan. As you’re about to see, there are five reasons to refinance right now.

As every property investor knows, you need to take advantage of any good market before it slips away. Even if we don’t see an economy as bad as we did during the Great Recession, the years ahead may see the housing market stall or even drop slightly.

However, experts predicted that 2019 would be good for housing prices and, so far, that forecast has been accurate. That makes now the perfect time to refinance by using a vacation rental property loan and then adding to your portfolio. The favorable economic climate will make for favorable terms, as well.

Keep in mind, too, that if property values keep rising, we’ll begin seeing more renters in the market. So, you could refinance properties with sufficient equity knowing that the amounts you can charge tenants will most likely rise soon, too. That will mean more favorable returns and a new vacation rental property for your portfolio.

The traditional housing market isn’t the only one doing well, either. There’s also a growing trend toward investing in vacation properties solely for the sake of listing them on Airbnb. Many hosts have actually been able to quit their jobs by focusing solely on their Airbnb businesses. These were people who didn’t originally have any interest in becoming full-time property investors. However, once they saw the kind of income Airbnb could help them produce, it became a no-brainer.

This is an extremely important reason to take out a vacation rental property loan now, refinance whichever properties you can, and use that money to purchase homes that would do well on Airbnb. Otherwise, you’ll soon be facing much greater competition from people who wouldn’t normally be in your market. As a veteran investor with a large portfolio, one of your biggest advantages is that you have those homes available for refinancing. Use it to secure the funds you need to purchase new properties.

Every successful investor keeps a close eye on the rate of return they’re seeing from each of their properties. They know that if it starts dipping year-after-year, it’s time to start thinking about making changes – from renovations to even selling.

That said, far too many experienced investors don’t realize how much greater their returns could be if they just refinanced.

If you’ve owned one or more of your properties for more than five years or so, it would be worth checking on their current value. There’s a good chance it’s gone up since you purchased them, which means you’ve increased the amount of equity you have in those properties, as well.

Of course, that also means you’re leaving money on the table every month because you’re not using the equity you’ve earned on new investments that would produce regular returns.

While many owners use their equity for repairs or renovations, another option is to refinance with a vacation rental property loan and add to your portfolio. As long as none of your homes desperately need any attention, your new property’s returns could help fund those improvements in the future and give you a new source of revenue.

Again, the time to do so is now. If the market starts heading in the opposite direction – or even if it just plateaus – that equity you’ve worked so hard to build won’t be worth nearly as much.

Another central tenet for owning a successful investment-property portfolio is that you always need to stay vigilant for obstacles to your cash flow. Similar to rates of return, when cash flow becomes a problem, you have to resolve it right away or it’s going to get worse.

It’s also why successful investors don’t let their properties remain vacant for long and are careful about screening tenants (or hiring someone to), so they don’t end up with problem residents.

Unfortunately, many of these otherwise diligent investors often miss one of the best opportunities for unlocking hidden cash flow: refinancing.

Even if a vacation rental property loan does nothing more than add a new property to your portfolio while also giving your other holdings longer amortization schedules, that would significantly add to your cash flow. You’d most likely enjoy reduced interest rates on those other properties, as well.

Finally, if you’ve been aggressively adding to your portfolio for years, you may eventually have trouble managing them all. Even with the help of a property management company,you’re still in charge of overseeing your entire portfolio.

This can become a real burden if you used separate loans for each of your properties. Staying on top of each loans’ unique requirements is both time-consuming and prone to costly errors. That’s actually one of the main reasons many experienced investors finally refinance, even above all of the ones we’ve already covered.

Something as simple as a blanket loan can put all of their holdings under one mortgage. That’s much easier to manage. Furthermore, it can be used as a vacation rental property loan, so you’re able to consolidate your entire portfolio and add to it, even if you want to add multiple properties.

Don’t hold off on building your portfolio even further when all it would take is using a vacation rental property loan to refinance.

We can help.

Our company specializes in connecting multi-property owners with the loans they need to grow their portfolios even further. Contact us today to find out how we can help.