Cash Out Refi 8 Unit

[Matthew Wright]

I have an 8 unit I bought in April, that Im looking to cash out refi after done with value add. Value add will be increasing rents, lowering dumpster fees, lowering utility costs, new windows and paint. The biggest value add component is the rent increase, the rents are about $300 below market. The interior of the building isnt that bad, doesnt really need much at all, though Ill probably spruce up a couple of the units between now and refi, so my question is, when the appraiser comes in, will they want to see every single unit? When I bought the building, they only cared to see a couple units and the basement, they did not require getting into to every one.

[Brian Metz]

I did a cash out refi of a 6 unit and they did not need to see all the units. I’m sure you’re aware of this, but it’s a mistake I made so worth sharing...whatever bank you’re wanting to use, make sure you know their seasoning requirements. When I was shopping, some lenders wanted to see those raised rents steady for a min of 6 months to a year or they would only lend on LTC not the value the appraiser came back with. I should have started with a bridge loan to season it and then secured long-term financing.

Cheers,

Brian