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Updated about 5 years ago on . Most recent reply
Tricky Refinancing Question
Hi BP community. I currently have one apartment building that has appreciated materially. I am negotiating financing on a second property in the same market. The new lender is recommending refinancing the first property (which I planned on doing anyway) by basically paying off my original mortgage, combining the two properties under a new loan / mortgage.
How should I be thinking about this? It seems like it would save me a decent amount of origination fees, etc. Does it prevent a future sale or 1031 of just one of the properties? Does it make my properties more vulnerable? I planned on using the 1st property at collateral for the second anyway. I just want to make sure I’m thinking about this the right way!
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#5 Multi-Family and Apartment Investing Contributor
- Investor
- Shelton, WA
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#5 Multi-Family and Apartment Investing Contributor
- Investor
- Shelton, WA
@Ken Martin I would not consider combining them for the concerns described by @Elijah Brown get separate loans even from another lender.