seller financed 4-plex

[Cody Begg]

Bryan College Station, TX

2 4-plex properties (side by side)

purchase price: $318,000

Seller Financed on 2 liens 1st lien 80% LTV 20 year note at 9% second lien for 10% for 2 years at 9%

10% out of pocket.

Monthly Rent of $4,200

Annual taxes of $4K

Insurance of $2K

Self managing at the moment.

How do I refinance the seller financing before the "sesaoning" period in order to get a new appraisal.

[Chris Mason]

Hi @Cody Begg,

One parcel / APN, or two?

Assuming it's two parcels: You can do it within six months as a rate/term refinance based on the lesser of sales price or appraised value, or wait six months, use only appraised value, and cash out refinancing is available if there is sufficient equity at that time.

Assuming one parcel: Commercial financing will apply as it is a single eight unit property, which isn't an area I know a lot about.