All Forum Posts by: Scott O.

Am been working towards just refinancing the $80,000 owed and pay for the roof out of pocket.  I would like to not have to spend out of my pocket would rather try to figure out how to do it as a long term expense.  Am just trying to figure out what makes the best business sense for the property.  How do other people finance large cost projects?  I have done home equity loans but they would only on my primary residence and I don't want to do that again.  Is there lenders that with loan to you on rental property.  I assume there is I just haven't found it yet.  I have limited my exposure to banks so far in my real estate indevors but to take it to the next step I feel like I have to.  That being said am no newbie at real estate just luckily never had to involve banks other that for some $10,000 or less equity loans. 

One bank didn't do anything over 4 plex. Another said I needed complete income forms for 2015 personal income which is not possible because I have 3 LLC business in different areas and putting together all of it would be to hard. They also said they wouldn't cash out any money for the roof unless I contracted it out to a roofing company. It's a job am more than competent to do an the roofing contractors prices are insane in my area because there are only a couple companies that do roofs. The last company would only do a 15 year with a 10year balloon. I have always used creative finciang or my own money in the past and haven't had to do tradional banks for more than a line of credit. Just seems like every time I have gone into the banks for financing ( about 5 times in 10 years) they make it so complicated with the piles of papers they need which don't have anything to do with the loan and it drags on and final I loss interest in whatever the plan was I had and figure out a different path.

What I really need help with is how would you refinance this property?

I have a 5 plex (one bedroom units) property I want to refinance.  I owe about $80,000 (balloon due in 2020)on it just had a comparative market analysis that valued it at $245,000.  Brings in about $2,500 +/- in rent a month.  Even after expenses it still has good cash flow.  All my local banks are making it  difficult to refi.  I'd also like to cash out about $15,000 and put a new roof on the building. I have also been thinking of selling.  What would you recommend?