Refinancing non-preforming commercal property
How do you refinance a under-performing commercial property?
I own a five unit apartment that I planned on refinancing this year.One of the units had been my primary residence, until I moved a few years ago.My mother had also lived in another unit. The remaining three units were not always rented because I have been overseas working for several years.
In 2013 I hired an apartment manager, and she was able to fill all five apartments in December.Tragically, one of the tenants committed suicide the next month.Since the suicide three of the four remaining tenants stopped paying rent.I guess not paying rent was their way of grieving.I evicted the third tenant today, so I now have three empty units out of five.The suicide unit has been cleaned and rehabbed and re-rented.
The property was part of an abandoned feed mill that I converted into apartments.December of last year was the only month I can show all five units were rented, so I don’t have much income history on the building. With the cost of the sucide clean up and evictions I am severe negative cash flow this year. Not something most bankers dream about refinancing