Finding the deal was easy, refinancing is horrible!!

[Dustin Kube]

My partner and I purchased a 13 unit property about 9 months ago for a million dollars. Comps in the area show the value to be around 1.5-1.75 million dollars. We got this great deal because of a great relationship with the seller and he required no inspection, no appraisal, 10 days to close and we are on seller financing. We had to borrow from friends and family to cover the 20% down payment and want to get those loans paid off by doing a cash-out refi. This process has been very painful. Seems banks only want to lend on the purchase price or charge astronomical interest rates and high points to do a cash-out. It feels like we followed BP's playbook of finding a great deal, having it cash flow exceptionally well, but now are getting hung up on getting a little bit of money out to pay off our investors. In these Covid days, are we asking too much to get a decent interest rate based on the actual value of the property? Are there any Phoenix area banks looking to make a loan like this?

[Michael Plante]

Couple things 

It’s only been 9 months 

As a buyer I would have paid for an appraisal and inspection 

As a seller I would be happy with no appraisal and no inspections   I don’t see this as a positive as a buyer 

You say you want money out based upon the actual value of the property. How do you know what the value is?