However, they will calculate a new DTI (debit to income ratio) based on the new monthly payments from your cash out refi or HELOC loan.Some quick pros and cons about Cash out Refi vsHELOCCash out Pros-tax free money-low interest rate-no monthly payments Cash out Cons-closing costs (couple thousand)HELOC Pros-tax free -its a line of credit, hence you can use pay back then use again-usually NO closing costsHeloc Cons-higher interest rate-have to make monthly payments on money borrowedHope this helps,CB

Below are some quick tips about cash out refi vs HELOC/LOCCash out Pros-tax free money-low interest rate-fixed monthly payments unless you choose a variable productCash out Cons-closing costs (couple thousand)HELOC/LOC Pros-tax free -its a line of credit, hence you can use pay back then use again-usually NO closing costs on residential Helocs; there will be closing costs on commericial LOCs-commericial LOC is very fast moving as far as getting funding and refinancing  (Makes it easy to rinse and repeat)HELOC/LOC Cons-higher interest rate-variable rates-monthly payments depend on amount borrowedHope this helps,CB

The family has moved out and the property is owned free and clear.  

I like the fact they can free roam and gather tenants and get paid based off a commission only.

Many investors seem to take the approach that a PM is just an unnecessary added expense that they can handle themselves, but I know from experience that a great PM will usually rent your property more often, for more money...not to mention take the daily management grind off the owner's plate...freeing them up to do more deals!  

If anyone would like to reach out feel free.  

Definitely start jumping into the community here and feel free to ask any questions related to Real Estate investing!

I want to avoid a balloon note and would prefer to do a straight fixed rate, 5 to 7 year loan to payoff the $1.25M and own the building free and clear.  

Please feel free to reach out thru the system if you can help me to reach my goals, and that it is beneficial to you in some way also.....thanks!

Feel free to PM