There is really only one way for interest rates to go. That’s up. For long term buy and hold investors it doesn’t matter if that takes 2 months, or 2 years. Just a couple point hike (and it will go much higher than that), will make hundreds of thousands of dollars difference in borrowing costs over the time holding even a small portfolio, or single property. That means those that may need to refinance within the next decade or two will be far better off doing it now.

Liquidity for Investors

Liquidity is critical to investors. It provides a cushion for unexpected damage and replacement needs, as well as personal needs such as major health expenses. When crises happen it is normally difficult, if not impossible to refinance. That means at least lining up an active credit line now can be invaluable.

Maximizing Investment Returns

Being able to recoup capital means being able to take advantage of current opportunities, and lock in great ongoing passive income and wealth building. Those who delay will suffer reduced returns due to a variety of market factors. Check out our DSCR loan program with NO job or income verification messing with your W2.

Diversity of Capital to Protect Investors

Access to more expansion capital now also means the benefits of greater diversity in a portfolio. This helps to keep income consistent, and protects investors from everything from local job market shifts to natural disasters.

Reduced Risk for Rental Property Investors

All of the above combine to reduce risk for rental property investors that sensibly leverage their properties now. Additionally, it can work to preserve credit by keeping lines clear and ensure working capital in a pinch.

Smart and modest leverage is a great tool. Those that hide behind the mirage of comfort that a mortgage free property are unfortunately deluding themselves. There is really no such thing as ‘free and clear’. There will always be property taxes, insurance or repairs. So why deny yourself of the best benefits of leverage?