All Forum Posts by: Gabriel Garcia

Thanks, Nathan. I am very curious too. I have had several properties where I’ve done a cash out refi on, but had conventional loans on them (vs commercial) for past the season period.

Hi Gabriel: If you wish to refinance inside of 6-12 months most lenders will lend up to 75 percent of the Purchase price and rehab. costs. Most HMLs especially on a 4 plex will want at least 6 months in order to use the appraised value. The refinance can take up to 30 days or more. You can start refinancing with a 6 month seasoning lender at the end of the 5th month from date of purchase. Sorry to be the bearer of bad news. If you find a shorter seasoning lender please share it with the members! Good luck and keep moving forward.

Thanks, Steven!

Good call on beginning the process earlier rather than later.

0 Votes

Fayetteville, Arkansas

Quote from @Billy Daniel:

@Gabriel Garcia you may be hard pressed to find a lender that will refinance that soon. They also will likely give you closer to 75%.

As for comps, an appraiser may take into consideration price/unit. That would bring in similar units from 2-6 or so. There's a bit of a gray area there, but it could be done.

Thanks, Billy!

0 Votes

Fayetteville, Arkansas

Quote from @John Herold:

There are lenders out there with no seasoning period. However, LTV's for cash out refi's are typically capped at 75% LTV.

Thanks, John!

0 Votes

Fayetteville, Arkansas

Quote from @Stephanie P.:

@Gabriel Garcia

80% loan to value for cash out is out there, but you have to wait 6 months. Probably worth the wait considering how much cash you'll have to come out of pocket at 75%.

Something to consider.

If it appraised as is at 400K, unless there was a condition adjustment for comparables that were completely renovated in the first appraisal, the appraiser is going to have to find additional 4 unit buildings that were renovated to bump up your appraised value. Possible? Yes. Likely? Not really. They'll probably use the same comps and give an upward adjustment for condition. You may get 50K out of it if you're lucky, but that may be just enough to get you what you need.

Stephanie

Hey Stephanie,

Thank you for the information! Unfortunately - I think you're spot on in that ~$50K may be the most I can get out of it since there hasn't been a recent 4 unit building that has sold.

1 Vote

Fayetteville, Arkansas

Hey Alex,

Great information! Thank you.

0 Votes

Fayetteville, Arkansas

Thanks, Nathan. I am very curious too. I have had several properties where I’ve done a cash out refi on, but had conventional loans on them (vs commercial) for past the season period.

0 Votes

Fayetteville, Arkansas

Hey All,

Needing some information/assistance.

Purchased a 4plex 30 days ago for $350k, it appraised as is for $400k.

Only one unit was occupied and rented out at $600.

We’ve since renovated all the units with our own money and have 4 leases in place at $950 each.

We’re on day 35 on having this loan and interested in knowing if there are lenders that would do a cash out refi at a 80-90 ltv, without a seasonal period?

How will it appraise if from a comps standpoint there hasn’t been any other 4plexes that have sold since the time of purchase?

Thanks in advance.

1 Vote

Fayetteville, Arkansas

@Ryan Blackstone

Great advice, thanks Ryan.

I believe you’re right in that more units will come available soon...

Thanks again!

0 Votes

@Ryan Blackstone

Hey Ryan,

(1) That is a great approach that I have not thought about.

(2) In regards to ‘off market’ properties, what have you found to be the best marketing approach for this? As of now, I have make cold calls and direct mail - but have not had any luck in this area.

Thanks for your advice!

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Hey there!

Looking for some advice. I currently own two duplexes and am actively looking to purchase my next one. I have saved up enough to put 20% down.

Unfortunately, I am now finding it difficult to find one that has the return that I want.

My question is:

To build my portfolio - Should I purchase a single family home that has an ‘okay’ return, or just play the waiting game and continue to save until a multi-family home that meets my numbers comes available?

0 Votes

All Forum Posts by: Gabriel Garcia

Gabriel Garcia has started 2 posts and replied 10 times.

Post: Cash Out Refinance Seasonal Period

Post: Cash Out Refinance Seasonal Period

Post: Cash Out Refinance Seasonal Period

Post: Cash Out Refinance Seasonal Period

Post: Cash Out Refinance Seasonal Period

Post: Cash Out Refinance Seasonal Period

Post: Cash Out Refinance Seasonal Period

Post: Getting my feet wet in Northwest Arkansas

Post: Getting my feet wet in Northwest Arkansas

Post: Getting my feet wet in Northwest Arkansas