Refinancing 4 plex on income approach possibilities

[Dana Revallo]

I bought a 4 unit building last fall in the midwest for $245k.  Gross rents are almost $4k/month. My mortgage is at 4%, I put 25% down and put an additional $30k in to it and replacing floors, repainted all interiors and appliances.  

When I got the appraisal, there was a page that included the income approach and it said it would appraise for $325k.  Sales comp appraisal was $255k.  

I'd like to pull cash out if there was any appreciation or I could get it valued based on the income approach.  I have a couple single family rentals but this is my first multi.

[John G.]

I would talk to a business banker they should be able to help you pull some equity on the commercial lending side.  Of course there will be a shorter loan term (usually 5 yrs), potential shorter amortization (15-25), and higher interest rate.  In my own experience they look at the income more so than the secondary market lenders.

Hope that helps!