Inspector · Voorhees, NJ · Member since 2015 · 104 posts · 47 votes
Hello All, I have a property in Philadelphia, PA that was originally planned to be a flip project. I am still optimistic that the market will rebound after this pandemic, but I am wanting to hedge potential losses (hard money holding costs) in the short term buy refinancing the loan into an interest only loan. Thoughts?
Boston, MA · Member since 2008 · 149 posts · 57 votes
6y
I think finding a lender to loan to right now is going to be hard with 0% equity. I hear about deals falling through that should otherwise have closed so you are asking for a unicorn right now. If you find it though, good luck!
Property Manager · Ridley, PA · Member since 2017 · 427 posts · 449 votes
6y
@David Vitarelli What's the TAT on the rehab? Your settlement costs on your int only refi may exceed HM holding costs. At a minimum, continue with rehab and decide upon completion how to proceed based on market conditions at that time.