Need Advice on the Best RE Financial Strategy for an 8-family in New Jersey

[Orkeem Davis]

Hello All,

I have an 8- family apartment building in New Jersey and I currently owe 600k and it has recently appraised at 900k. I have and continue to work on different CAP X Improvements, including new roof shingles, new windows, new sliding doors, landscaping, new appliances, and more. Currently, I have a 5-year ARM interest only loan and I am clearing over 6k monthly after the mortgage is paid.

I decided on this loan product because I wanted to have more cash on hand and the option to pay down the mortgage quickly. Right now, I am trying to decide if I should focus on Forced Appreciation and get the value to 1 million - 1.1 million, pay down the principal, or both? After the 5-year ARM ends, I could realistically be in a financial position to pay off the 600k in full or pay down the principal significantly. Should I refinance to a new 5-year interest only loan and continue with a lower payment? Or do a Cash-Out Refinance with a 30 year-rental loan w/ PITI? Or HELOC? All advice welcome. Thank you.