My first Cash out Refit :P

[Brian S.]

Hey Fam,

Seeking an OG to give me their "hot take".. like a "holy shii don't do that" and or listen to my thinking and tell me if it sounds reasonable.

A second set of eyes.

So I own a 18 unit bldg, and have a partner at around 25% stake. I/we have owned for 4 yrs now, and as I've gradually increased rents and thus NOI, the property value has increased significantly (also compressed cap rates where i'm at), and my partner is seeking a buyout, which I'm game for.

Applying for a refi, and just now got the proposed terms: 1.2M Loan at 7% for 5yr term/30yr amortized.. sheesh..

My thoughts: I really want to get liquidity/equity out, which in this case I can get out a good 350k at least, as there's "blood in the streets" across many investing asset classes, and I believe I can get amazing entries/returns over the next 24 months, and definitely/easily "beat" the 7% cost of money here for this loan, BUT 7%, dang, that's highest loan I've ever signed for by far..

Anywho, not seeking an "answer" but more or less some thoughts, a "what would you do?"

I'm basically gonna do it as I'm confident to get at least a 2x, and maybe 3-5x, in crypto investment in next 24 months..

(I think waiting for rates to come down could long time)