BRRRR Trouble with refinance

[Aaron Garbade]

Good morning,

Back in May I did a cash purchase on a 4 plex that needed a little work. I bought the property with hard money, fixed it with my own money, went to refinance and: it made it all the way to underwriting before the lender told me that they wont refi it for me because the property is actually deeded as 4 townhomes... I want to make sure that I am learning as much from this as I can. I did 1 closing, I have 1 insurance policy for the prop, I did pay taxes on 4 units separately but i also do that with a duplex that I own. All the units are under 1 roof and there are no additional units in the building..

Any advice would be welcomed.
 

[Joe Splitrock]

Originally posted by @Aaron Garbade:

Good morning,

Back in May I did a cash purchase on a 4 plex that needed a little work. I bought the property with hard money, fixed it with my own money, went to refinance and: it made it all the way to underwriting before the lender told me that they wont refi it for me because the property is actually deeded as 4 townhomes... I want to make sure that I am learning as much from this as I can. I did 1 closing, I have 1 insurance policy for the prop, I did pay taxes on 4 units separately but i also do that with a duplex that I own. All the units are under 1 roof and there are no additional units in the building..

Any advice would be welcomed.
 

 There could be an advantage to this because you can sell units individually. That could net more profit then selling as a fourplex. This is a good question for mortgage lenders. I have owned duplex, but I have also considered buying two sides of a twin home. I always assumed you could just take one loan on a twin home. Maybe it is as simple as contacting the city or county and having the property reclassified. I know you can split a property, so it seems logical you could combine. I would call a couple mortgage lenders and the city to see what options are. Maybe @Chris Mason would know?