How long after purchasing Can I Refi? - Commercial

[Matthew Masoud]

So I'm purchasing a 6-unit property in cash.

My plan is to purchase the property at $220,000 (way under market). Do some repairs and raise rents to market rent. Then refi the property (ARV $300,000) and take my $220,000 out. Pretty straight forward BRRRR

I'm about to close on this property so I start calling mortgage lenders to start discussing the refi. The first few I called wanted to wait 2 years before the refi.

How long after purchasing a commercial property does it take to refinance it?

My plan was to refi after I do my repairs and get the rent to market rent. (3-6 months)

[John Leake]

You can pull capital out based on the appraised value of the property relatively quickly. If you are wanting to pull out based on the cashflow you will have to have some supportive history of the stabilized rental income. It may cost you some in fees but I would likely take a loan and pull out based on the property value and then refinance it again once you hit stabilization. Different banks may require different seasoning periods I was advised a year on my commercial property.

[Andrew Syrios]

Mostly depends on the bank, some could be the next day (assuming the property is rented and performing). Others (most to be honest) will want it to "season" before lending at appraised value instead of cost. These days seasoning periods are probably around 6 months to a year. I would ask around.