Cash out re-fi options on a fourplex to use for the next deal

[David S.]

I’m finishing a renovation on a 4plex, and am trying to figure out my next step. I am going to do a cash out re-fi, but would appreciate advice from here. Appraisal should come in around $550k

Option 1

5.25% for a conventional loan

75% LTV for cash out. $412.5k

Solid conventional loan, lowest interest overall

Option 2

5.5% for commercial loan

75% LTV for cash out. $412.5k

5 year balloon, 25 year amortization

if I re-fi into a 30 year fixed at 5.25% in 5 years this looks like $64k more in interest over the life on the loan

If I re-fi into a 25 year loan, adds $170 more a month, but total interest is $5k less over the total 30 years. Probably a slight loss after the second set of closing costs, and that's with the gamble that interest rates don't rise.

Option 3

5.5% for commercial loan

65% LTV for cash out. $357.5k

5 year balloon, 25 year amortization

10% line of credit at prime +1

One plus here, I won’t be paying interest on money I’m not using.

A big concern is timing. I’m doing a walkthrough on an off market duplex on Monday, and it looks like a good deal. I probably wouldn’t have time for the conventional cash out to have money on hand to do the deal. I’m also having my wife do a walkthrough of two possible flips on Monday, both look like solid deals for our first flip. With the commercial re-fi, both could happen easily.

Are there other options I'm not seeing? I'd need about $38-45k for the duplex, and another $30k for one of the flips. Would a crowdfunding site provide the purchase capital and take 2nd position to get me into the deal? Or do I bite the bullet and pay more interest using a commercial loan to free up cash faster?