When should I Refinance this apartment complex?

[James Allen]

Hey guys,

I'm currently finishing up renovations on my first apartment complex (A 5-unit property). I'm looking to cash out refinance based on the new NOI. In order to get the maximum value, do they appraise based on a trailing 12 months or just based on where rents are currently at. Essentially do I need to wait 12 months after putting my last tenant in to get maximum appraised value?

[Andrew Syrios]

Some lenders want a trailing 12, but are willing to go off a shortly history and the pro forma. They're more likely to do that if they have a relationship with you. The best thing to do would be to talk to some banks and see what they're willing to do. (Although you may also want to hold off on refinancing until rates cool off, although I would unfortunately, be surprised if that's before 2024.)