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Updated about 3 years ago,
line of credit on commercial property
Property is listed at 750k it is 8,375sf and currently has 3k sf leased at $3,750.00 per month. I have not been privy to the full details of the lease that is currently locked in but I do have access to a new lease about to be sign with the owners at $6,500.00 for the remaining 5,374sf. on the $6500 lease all utilities will be paid for by tenant as well as roughly 65% of the property taxes and any interior maintanence, damage or changes are the responsibility of the tenant. they are 5 yr Leases and this is a medical building with two seperate professions on the lease.. my question is if the total income is $9,875.00 monthly, and the property is listed at 750k will the bank give the original loan at the 750k but then also refi at or give a line of credit on the remaining value? I don't know how to properly estimate a cap rate but I took total income and ÷ by 1/2 (for expenses) and then took a 6 cap on that and it still comes out at 846,000 roughly so would I be able to refi the nearly 100k out of the property or better yet have a line of credit on it and be able to use that to pay off a capital parter on the original purchase? sorry this is long winded but I've got 10000 thoughts about this and it seems so good I need to make this work
thanks!