Refinancing out of Bridge Loan

[Justin Dalton]

Good afternoon, everyone 

I have a question about refinancing out of my bridge loan.

So I have a duplex in Memphis that I acquired last year. I got one side rehabbed and the other side waiting for  a report on what rehab looks like. (Since tenant just moved out).

My issue is I went to refinance out of my bridge loan.However after the property was appraised, it's not currently worth enough where a bank (that I have found so far) will take it on without me paying another $29,000 to cover the difference.

I don't have that capital at the moment to do this and next month the loan is mature so the interest only payments go up.

My only thought is to pay the higher interest until the other side is rehabbed and have it reappraised.

Im open to thoughts and opinions.

thanks for your time

[Drew Sygit]

Quote from @Justin Dalton:

Good afternoon, everyone 

I have a question about refinancing out of my bridge loan.

So I have a duplex in Memphis that I acquired last year. I got one side rehabbed and the other side waiting for  a report on what rehab looks like. (Since tenant just moved out).

My issue is I went to refinance out of my bridge loan.However after the property was appraised, it's not currently worth enough where a bank (that I have found so far) will take it on without me paying another $29,000 to cover the difference.

I don't have that capital at the moment to do this and next month the loan is mature so the interest only payments go up.

My only thought is to pay the higher interest until the other side is rehabbed and have it reappraised.

Im open to thoughts and opinions.

thanks for your time

 You want to be VERY CAREFUL about what you do next!

Have seen many newer investors make the mistake of assuming every dollar they spend improving a property will directly increase the value.

NOT TRUE!

According to National Association of Realtors, very FEW improvements improve value in alignment iwth their costs:

https://www.nar.realtor/magazine/real-estate-news/sales-mark...

Highly recommend finding an agent that understands all this, so you don't waste money on improvements/rehab that won't increase the value enough so you can refinance.