Big Win Today: Cash Out Refinancing

[Stewart Beal]

Big win today! In June 2019 I purchased the Ridge Center in Ypsilanti, a 6 suite office building on a prominent corner E. Michigan and Ridge Road. The purchase price was $250,000 and I paid cash as it is very difficult to finance a vacant office building. We invested $30,000 into the building, leased up all 6 spaces, received an appraisal for $500,000 and executed a cash out refinance for $325,000 obtaining all of our original investment back plus $55,000. The loan is w/ Union Bank in Bowling Green, OH, 4% interest, 10 year term, 20 year amortization. I was looking for lower interest rate and more cash out and was offered 5%, 4.5%, and 4.25% from 3 banks, but no one was looking to get aggressive on office space, but 4% will do just fine. On to the next one.