Updated about 3 years ago on . Most recent reply
Refinancing Mixed Use Property
I am looking to buy a mixed use property (studio apartment, 1 bedroom apartment, and a small commercial space).
I did a similar property last year funded by myself, but now have a private money lender that i am looking to use for this property.
My first question is, do i borrow the full purchase price and rehab cost to close on the property? Or, should i just borrow 25% downpayment and rehab costs?
Once i rehab and get the rents up (my current property's NOI is $2,800/month or $33,600/year. I expect the new property be run an NOI around $2,500-$2,800/month.
Once its rehabbed and rented out, would the bank appraise using the income calculation? Or would they use similarly sold properties in the area?
Appreciate the input!
Joe