Cash Out Refi on Multifamily Properties

[Chuck Mak]

I rehabbed, have owned free-and-clear two multifamily buildings: 8 and 5-unit for 3+ years.

Essentially zero vacancy and steady rent increase in this popular downtown location.

Annual NOI is $140K although I manage them myself. Roughly $70K from each building.

I am looking to take out $400 to 500K on one of them so I can put up a new 5-unit apartment building behind it.

Local banks not too keen in lending.

Any advice would be appreciated.