Two Unit Commercial Loan

[Gary Grant]

I have a two unit which I purchased for $130K in 2019.  We have updated the property and I am receiving $2600.00 in monthly rent from two tenants.  Just looking on Zillow it says the zestimator says the property is worth $174K.  Can someone help me with figuring out how much equity I have in the property and how I can use the equity to purchase some more multi family properties.  Any help would be appreciated.

[Stephanie P.]

Quote from @Gary Grant:

Chris 

the problem here is that the property is not in a LLC. It is in my personal name. This deal has been a nightmare trying to figure out how this loan is structured.

I know there is at least 240K now from my rehabbing and new tenants.  This place is a cash flowing. 

Different terms for the same thing. A non-owner occupied rental property, in some circles, is considered a commercial property. It sounds like you have a DSCR loan or "business purpose" loan on the duplex right now. If that's the case, you may have a prepayment penalty, so be careful. If the property is worth $240,000, then the max ltv will be 75% of that or $180,000. If you purchased it for $130,000 in 2019 and you used a DSCR loan, you probably put 25% down, so your payoff is about $100,000. To answer your question, after costs, you will probably have about $65,000 to play with when all is said and done and it will still have decent cash flow. Again, watch for a prepayment penalty and do another DSCR loan.