I need to refinance a Hard Money Loan as soon as project is complete and lease the home instead of Selling. I'm just afraid that due to delays and expenses related to the hard money loan we will break even at best if we sell. Whereas if we refinance and lease it out we will save on Real Estate commission, hard money interest and will allow the property to appreciate. Any thoughts as to whether this is a good idea? Can someone point me in the right direction as far as what type of lender does this.
I'm hoping to help you avoid a cascade of decisions that could bury you.
If the deal's profitability is based on whether or not you save on Realtor commissions, it probably wasn't a good deal from the beginning. Don't decide to rent just because you want to avoid a loss. If the market turns now you may be underwater for several years. If you have to take a loss then, you may be much worse off. It could hurt you further if you have negative carry costs. Going that path could bury you.
Only decide to rent if this property makes sense as a rental and can generate strong cashflow. Otherwise, cut your losses and sell.
@Greg Scott makes a great point. If it is not going to be a good rental property you are better off selling now and taking your loss rather than prolonging your risk exposure and the headaches of a bad property.