Refinancing Detroit Triplex

[Mark Warlick]

I am refinancing an owner occupied Detroit Triplex. I have been quoted a 9.9% Rate with a 1 year 5% Prepayment penalty. The rate is high because of the credit score, which is due to high balances, but no latest. Several other brokers have not been able to get the deal done due to DTI. This is private money. That said, the deal will still cash flow $375/mo as owner occupied and and $1200/mo non owner occupied. My next project is the exact same building down the street.

My question is, should I take the deal or keep shopping?

[Elealeh Fulmaran]

If it truly cash flows today even at 9.9% and you can live with a 1‑year, 5% prepay, I'd lock it with a clear 6–12 month plan to pay down balances, boost credit, and refi out when DTI improves; otherwise, set a 7–10 day deadline to shop DSCR or alternative private options, and if nothing beats it on rate, fee, or prepay, take this deal and keep momentum into the next building.