All Forum Posts by: Michael Evans

I own a 51 Unit Apartment that's valued at $3.6 million and we owe $2.5 million. We have some repairs we need cash for and I was wondering if it is possible to get an equity line for an apartment?

Ive considered doing a cash out refinance since our rate is not great at 4.79% but the prepayment penalty is high since it is a mark to market penalty. The prepayment penalty makes this a bad solution for a few years.

The appartment is in Chicago but I live on tbe west coast.

I'd love some ideas.

My question is concerning multifamily properties. They are valued using cap rates, cap rates are driven to some degree by interest rates. Given that the Fed has been raising rates and we are in a rising rate environment wouldn't that mathematically devalue multifamily properties as cap rates rise? I understand rents should increase as well which would increase BOI. Do these offset and retain value? I understand we will see 2 or 3 rate increases thus year. Any insight would be helpful.