 CASH OUT LOAN ON APT (by Big Joe [GA]) Jul 18, 2021 8:27 AM
 CASH OUT LOAN ON APT (by Big Joe [GA]) Jul 18, 2021 8:38 AM
CASH OUT LOAN ON APT (by Robert,OntarioCanada [ON]) Jul 18, 2021 10:24 AM
CASH OUT LOAN ON APT (by Robert J [CA]) Jul 18, 2021 1:19 PM
CASH OUT LOAN ON APT (by MG [NJ]) Jul 19, 2021 11:01 AM
CASH OUT LOAN ON APT (by Ray-N-Pa [PA]) Jul 21, 2021 9:31 PM
CASH OUT LOAN ON APT (by Pmh [TX]) Jul 22, 2021 7:17 PM
CASH OUT LOAN ON APT (by Big Joe [GA]) Posted on: Jul 18, 2021 8:27 AM
Message:
I've never done a real "cash-out" refi.
Looking forward 10 years...just planning, based on estimates.
I have a multi-family building that I bought for $950,000 for nothing down, just put up other collateral. It cash flows barely.
The mortgage is amortized over 25 years, and the 4.25% rate is locked in for 10 years.
In 10 years, my estimate of building worth would be $1,150,000.
Balance on note at that time would be estimated $684,000.
Wondering- what can I expect with a cash-out refinance?
80% of value? Same or higher rate than what I would pay for a no cashout refinance?
--70.92.xx.xx |
CASH OUT LOAN ON APT (by Big Joe [GA]) Posted on: Jul 18, 2021 8:38 AM
Message:
That value estimate in 10 years was supposed to be $1,050,000 NOT $1,150,000.
(and yes, it's totally an estimate (WAG) --70.92.xx.xx |
CASH OUT LOAN ON APT (by Robert,OntarioCanada [ON]) Posted on: Jul 18, 2021 10:24 AM
Message:
There is inflation along with major capital expenditures will always be required on apartment complexes like a roof, structural repairs, windows, plumbing and water heaters. Found that apartment buildings that all inclusive had higher operating costs as the consumption is considerably higher as there is no incentive to conserve. Here interest payments are a expense on taxes. It is always difficult where paying weekly is a better option or biweekly where more principle is paid each month where will pay off faster. If all inclusive then separating out utilities one rental unit at a time is expensive where once done the value of the apartment complex goes up as there significant reduction in operating costs. Utility costs in the future are never predictable. Here there is carbon tax plus 13 per cent harmonized tax on utilities except water, sewage charges where left wing governments make utilities more expensive. No one knows if the dems will bring in a carbon tax where at first small then every year goes up. --99.236.xxx.xxx |
CASH OUT LOAN ON APT (by Robert J [CA]) Posted on: Jul 18, 2021 1:19 PM
Message:
Apartment re-financing is much different than purchase financing. Lenders want an appraisal done by someone who is State Certified. Then they discount 25% for vacancies and repairs. So that means you value is at 75% of market.
When I purchased a property for "cash", down the road I wanted to obtain a first mortgage at 50% of my purchases price. The lenders played games. Any refinance of an owned property has to be done over 1 year after the purchase, or the lenders think the owner is in "trouble".
So instead of going to a bank, I went with a mortgage broker who has a list of non-bank lenders happy to lend at any time. --47.155.xx.xxx |
CASH OUT LOAN ON APT (by MG [NJ]) Posted on: Jul 19, 2021 11:01 AM
Message:
If this is a commercial property (> 4 units), they should look at your income minus your non-financing expenses, which they might inflate (they calculated higher vacancy rates, utility & management fees for me that I don't have). Your cashflow would have to cover 130% of mortgage. They will use a cap rate to value the property/limit loan amount. --71.104.xx.xxx |
CASH OUT LOAN ON APT (by Ray-N-Pa [PA]) Posted on: Jul 21, 2021 9:31 PM
Message:
LTV at 75% or lower
DSCR at 1.2 or higher
So it will depend on the future value and the cash flow. Now is the time to slowly allow inflation to become your friend --72.23.xxx.xx |
CASH OUT LOAN ON APT (by Pmh [TX]) Posted on: Jul 22, 2021 7:17 PM
Message:
nonsensical to be asking today what you can do in 10 years. to follow up on Ray: inflation (rent increases) will help with dscr. which will help if minimum 1.2 then. not sure why anyone buys if cash on cash doesn’t return at least 30% --107.77.xxx.xx |
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