Q1: In September 2020 I purchased what I will call a duplex, but really it is a SFR and a detached barber shop that was converted to a studio apartment, on the same lot. The SFR rents for $700 and the studio rents for $500. I purchased the property for $60k cash because I was in the process of closing a cash out refi on another property, and I had planned to use delayed financing to pull back out 75% of my invested capital after the refi closed. The property appraised for $58k in December. However, I have been turned down by two local banks due to the "uniqueness" of the property, i.e. it doesn't fit their lending criteria. I even asked about construction-to-perm options to add another unit, and connect them all into a single level triplex, but was shot down.
Anyone lenders/brokers out there that will lend on this type of property, or suggestions on lenders you have worked with on similar properties?
Q2: I have another duplex purchased 3 years ago that has appreciated (forced and market), and I want to pull out the $30k in equity to deploy in other deals, and lock in a lower rate. However, I quit claim deeded the property to my LLC in 2019 and I am being told by the lenders I usually work with that they will not lend to corporate entities.
Do I quit claim the property back to myself, and if so, is there generally a waiting period or will this be a red flag to potential lenders?
Should I work with the existing lender on a cash out refi, or could this trigger the due on sale clause?
Help!
