Cash out refinance: commercial or conventional?

[Jaideep Balekar]

Hello all, I'm trying to do a cashout refinance on two quads that I acquired in January, I fixed them up and doubled the rents, now looking to pull out my cash. These are my first investment properties, so I am eligible for 2 conventional loans and I have pre-approval for 30yr fixed at 3.5% with 70% LTV. I also have been approved for one commercial loan (both quads under one loan)- 80% LTV at 2.85% 5 yr with 25 year amortization.

With commercial, I have lower rate of interest, higher LTV, ability to move properties under LLC and 1 closing cost.

With conventional, I have decent rate of interest, peace of mind with 30yr fixed rate but two closing costs and lower LTV.

Which option would you pick and why?

Thank you in advance for all your help and suggestions!

[Cody Campbell]

First of all your numbers are awesome, Either one would be great. I try to keep as much money in my pocket as possible so I can move forward and do more deals. I would go with the commercial, the 5 year is a simply a safe guard the bank takes....also at the five year mark you have the option to shop around and potentially pull more money out at the five year mark.