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Updated almost 7 years ago,
Best Options for My Commercial Equity
I'm looking for advice on how to BRRR a commercial property in the most effective way.
This property is under very poor management and slightly distressed. Appraised at $550k, but with some tweaks and rent raises, I’m estimating I can get the value up to $925k-ish within a year. Buying for $500k with 20% down with a local credit union.
So let's just say I reach that $925k goal within the year. What is the best strategy for me to to use that equity to further build my portfolio? Cash out refi? LOC on that?
I'm unsure if commercial plays by different rules when it comes to the BRRR strategy.
Also, with commercial how long should I expect to wait before being able to harness that equity? A year? More? I assume they would want solid new NOI numbers.