indoor pool 10 bed 2 bath refi

[Zachary Rosa]

Hi,

2 years ago I bought a very unique property in NH. It has 10 bedrooms and an indoor pool. This property is zoned residential. The property has brought in over $220k each of the past 2 years and on track for more this year. I bought the house for $700k and believe it is work much more and want to do a cash out refinance. I know commercial properties are valued based on the income. Is there anyone who will lend on an STR/residential property based on the income? Again my goal is to do a cash out refi. My current rate is 5.9. I may not exacute on this just yet but I believe rates will be close to this by the end of 2024. Let me know what you think!

[Ko Kashiwagi]

Hi Zachary,

Congratulations of having such good deal! Yes, lenders are able to provide commercial cash out refinance based on income, similar to a residential DSCR. Rates and terms would certainly depend on what kind of commercial you opt for. For example, a light documentation program would require less debt-to-coverage ratio, but the rates would be higher (7-10 right now). Alternatively, with a full documentation program, assuming you are in a market that cash flows well, you can get better rates but the requirements are higher.