Private lender offering 6-8% for REFI cashout, good or no?

[Steven Foster Wilson]

So back in October we bought a three unit for $160,000. We've spent the last 8 months remodeling and placing new tenants in 2/3 of the units, the last unit we plan to occupy to get a better deal on the refinance. However as it seems my DTI ratio is to high to qualify for traditional financing.

However in the process of going through the bank application we did an appraisal, the appraised amount is $325,000. So there is a lot of equity just sitting in the deal.

I have reached out to some hard money lenders who have long term 30 year products however there rates are 6-8%. (The property would still cashflow $1,100 with a 6% loan)

Do I go through with the hard money lender just to get $100k cash back even though its a high interest rate? I know 6-8% is a lot, but I also need the $100k from the refi to buy more real estate.

[Kerry Baird]

That's a good rate for portfolio money.  I'm seeing 11 to 13% depending on the lender.