Multifamily Refinancing Terms/Conditions: What should I look for?

[Matthew Metros]

I will be utilizing the BRRRR strategy of Buy Rehab Rent Refinance Repeat to grow the portfolio.

We are looking for a delayed financing loan product that fits this strategy and mainly trying to avoid products that have high fees, a long seasoning period, and prepayment penalties. Once we renovate the property to add value (Equity), we want to refinance once the property increased in value.

My question is around the questions, products, terms, & conditions I should be directionally aware of when having conversations with lenders.

Below are some notes that I wrote to get the ball rolling on this:

Refinance Financial Products

• Convention Financing/Agency Debt (Are these the same?)

Refinancing Financial Terms To Look At

• Amortization Periods
  • Target: 30 Years
• Longer Terms
  • Target: 30 Years
• Rates:
  • Target: Concurrent with Conventional Residential Rates?
• Pre-Payment Penalties:
  • Surely I need to consider this?