Will banks refinance at an LTV that doesn’t cash flow?

[Steve Davis]

Looking to eventually refinance a 7 unit apartment... will banks refinance at the appraised amount on an LTV that doesn't cash flow? Say -400 to - 600 a month or so...

I don’t mind absorbing this overhead if it means I get the majority of my initial investment out of the deal

[Cory Carlson]

The easy answer is no. Income and asset based lending comes down to the financials. If your DSCR is below 1.25 (or whatever that lenders threshold is, usually around there) they will not lend on it. That is just one of the many initial underwriting criteria. A good commercial mortgage broker in the market of your property that has connections with the banks will be a much better resource to you than these forums.

I am sure someone will chime in with some insight on some special lending idea/package that is much more difficult than just conventional financing.