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Updated about 6 years ago,
Cash out refinance needed for new motel purchase
I currently own 2 buildings next to one another with seperate addresses, both zoned commercial but structures considered SFR's. Each has 1 communal kitchen and 4 shared baths. They're set up like co-ops or dormitories, one has 14 rooms the other has 10. Very profitable, CAP rate growing to near 20% as I remodel and add rooms (about 50% there). Smaller building worth 220k, larger 300k. Owe 230k in a single loan seller carry deal, 5 year term at 6% interest. Both properties located in Coeur d'Alene, Idaho 83814.
I'd like to cash out refi, maybe take 150k, and move money into a half remodeled 11 unit motel in 83814 for down payment and rehab. Motel selling for 500k, 5500 sqft on 1/4 acre lot zoned C17 with large common area and ample basement spaces. Worth easy 750k after complete remodel with potential to pull 200k gross rents yearly.
Any lenders out there that can do both deals at reasonable terms? My tax returns show little and fico is 600 thanks to extended credit but getting better. Thanks!