Refinancing an Owner Financed 8 Unit property
Hi all,
I’ll save you the details of why the property I am looking at works and get to the point. This is my first post so forgive me if I am not following the usual conventions or standards but I think I woke up with a good idea and I wanted to run the feasibility of it by experienced investors.
Currently I am looking at purchasing an 8 Unit building in the state of Alabama. All financing options through banks require the ugly 25% down payment which I can just barely afford. This property happens to have an owner willing to owner finance however! I like the idea because I can put less down and have some cash left over for any problems that might arise down the road. The basic terms of the deal are: 15% down with a five year balloon and a 7% interest rate.
My question is will I be able to refinance an 8 unit property easily after let’s say year one (which would save me the extra money down up front)? This would be my first commercial property purchase so I’m not sure of the usual conventions. I will be calling my bank to see what they’d advise as soon as I get back in the country but I figured I’d ask everyone here.