Looking for recommendation on lending options
Hello!
I have a 1031 exchange on a property I am selling next week that is roughly around $110k. I am looking for recommendations for lenders that will do a cash out refi on a portfolio property. I recently found a portfolio property here in the Charlotte area.
It is 12 SFR on one lot (3 acres roughly) currently gross rents are $53k a year with one vacant. The purchase price is $370k. I am planning to utilize hard money to roll in $200k (plus the remainder to purchase it) to completely revamp the exterior of all units and renovate 9 of them. With the renovations, the projected rents will be $93,600. The cap rate will stay at 12.4% with our cash on cash increasing from 22.6% to 34.7%.
If you value this property with a 10% cap rate with $78,9884 operating income, it puts the value at $789,840. I will have more than 25% equity in the property prior to refinancing. Has anyone ever used lenders in the North Carolina area that will do a cash out refinance on a portfolio loan?