I believe that the Federal Reserve is going to cut rates by 25-50 bps at it's September meeting (no emergency cut), but that 30-year fixed rate mortgage rates will rise to upper 6s low 7s around the same time, and Commercial borrowing rates, including for multifamily, will increase as well. 

I live in a very desirably town in upstate NY, refinanced at a super low rate, so will keep the house as a rental.

Financial Highlights•Acquisition Price: $72,000•Renovation Costs: $35,600•Total Investment: $107,600•Funds: raised from personal savings and private lender•Appraised Value: $160,700•Monthly Rent: $2,150•Cash-Out Refinance: $3,200 after paying off private lender and myself•Rate and Term Refinance: 30 yr amortization, 7.25% interest, 70% LTV•DSCR: 1.45% Lessons learned?

@Robby SanchezBridge loans are short term and if they default or mature in many instances the interest rate doubles - so make sure you have a very solid exit planI see many get a bridge loan and realize they don’t have the 25% equity in the deal to refinance to another loan and end up getting wiped or foreclosed on because they never researched what they needed to be at on the back end when they were refinancing.

The initial plan is a 1200 sf build out with plans to expand back away from the cliff later as finances and interest rates are more favorable.

@Arshiya Taami yes, you could potentially keep the great rate in the #% range that you have and tap in to the equity with a 2nd loan of up to around 80% to use for the down payment funds you are looking for.

This would allow you to maximize tax deductions at ordinary tax rates.

In reality this strategy still works, but we are having to leave more of our own money in the deal because prices are high and/or rent won’t justify maxing the cash out refinance because interest rate is high.

Life is on easy street when rates are 2% or I.O. 

I had a “lender” tell me he’d give me a personal loan with a fixed 4% rate on a 30 year term at whatever amount I wanted because he would like to “build a relationship” with me.