6 Unit Value Add Refinancing Strategy

[Gilbert Lowe III]

I am seeking to get a few strategy ideas for refinancing a 6 unit apartment building, in Pittsburgh, Pa,  that I own free and clear.  I bought the building 6 months ago and at the time it was 50% occupied and the rents were 30% below market.  Since then I made improvements and raised the existing rents to market rate and I fully renovated 2 of the 3 vacant apartments and got them leased up.  I am about to begin the renovation for the 6th apartment and I already have a waiting list of potential tenants for this apartment.  I want to have a refinancing strategy in place so that when I finish this renovation I know my next step.

I had conversations with a few lenders and they have seasoning requirements that will not allow them to do a cash out refinance based on the newly appraised value of the building until I have owned it for a year. I know lenders that will lend based on the price I paid for the building but this would leave the equity tied up in the building and I want to use it for my next deal. The NOI is $30k ( including a vacancy factor of 5%) so based on a 10% cap rate it should appraise for $300K.

Im interested in knowing how some of you would handle the deal?