BRRR Refinance Question

[Kelly M.]

Hi!

I would like to BRRR my property but for some reason I can't get my head around the numbers.

Currently I have a commercial 5 year, 20yr amortization, 5.5% with a $140k balance.

I want to BRRR into a 30 year fixed rate and take cash out. I think I can get the property to appraise for 350k. If my lender does 70% LTV, I could take out $245k? Is that correct or am I missing something. It seems too good to be true.

Cash flow will support the higher payment. I currently have three units. One brings in $1575/month. One brings in $950/month and I’m renovating the third unit and should be able to get $650/month.

Can I really take out $245k or am I looking at it wrong?

[Alex Bekeza]

@Kelly M. You can get a new loan for $245k yes but it will be used to pay off the other mortgage in 1st position.  So you're really taking out $245k - $140k - closing costs so probably a little under $100k to walk away with all said and done.