Tri-Plex Renovation Loan Interest Rates
Hello BP Community,
I have a question regarding my triplex in Ocala, FL. The property needs a new roof, a new parking lot, and a few other minor improvements to enhance its performance. While I have sufficient liquid cash on hand, I prefer to maintain liquidity as I'm actively seeking my next deal.
The property currently cash flows around $1,800 a month after operating expenses. I'm considering a business loan of $35,000, with my credit score at 748. The offer I received is a 9% interest rate on a 5-year term, resulting in a monthly payment of $726. There's also an option for a 7-year term, but it comes with a higher interest rate.
I have the flexibility to pay off the loan without penalty, which I plan to do after securing my next deal and cash-out refinancing this triplex. My main concern is whether a 9% interest rate is reasonable in the current market conditions given my credit score. Do you think there are better rates available, or is this typical for business loans at the moment?
Appreciate any insights or advice!
Thanks,
Karl