Without proper permits, there’s a chance the city may request you to revert any non-compliant additions (like the extra bathroom) to align with code standards.When it comes to refinancing, banks tend to look closely at the property’s legal compliance.

I don't think refinancing will make sense here at all, Assuming your property does appraise for $166k, and you take out a loan at 75% LTV, that will give you a loan amount of $124,500Assuming your loan fees are the following: Origination: $2,490Underwriting: $1395Processing: $500Title/Escrow/Other Closing Fees: $1800Prepaids: $1,300Subtracting the payoff + loan fees that would leave you with $17,015 at closing.

Refinancing could help improve cash flow later.Additional (Potential) Scenarios To Consider:1.

@Brody VeilleuxTo maximize returns on multifamily housing, focus on mid-grade updates, amenities, curb appeal, utilities, exploring additional units, creating flexible spaces, and refinancing with a value-add record.

This includes some amount of cash flow and then a larger payout once the property is sold or refinanced after X number of years.

If you have a low rate with a pretty high LTV already then I wouldn't be refinancing it now to consolidate $12K in debt.3) You need to find a deal before you can apply for the loan.

To accelerate your real estate portfolio growth, leverage equity through Home Equity Lines of Credit (HELOCs) and cash-out refinancing.

Refinancing to get your cash out after paying cash for the property wasn't worth it.

If you do qualify you would basically be refinancing your current Heloc and use the new Heloc to pay it off the original Heloc.

And one of the things I've been told is that there is no seasoning for refinancing which contradicts what you said about the two year period.