Refinance on 16 unit Portfolio

[Emanuele Pani]

Hello BP,

Wanted to get some help in evaluating a refinance term sheet that I received from a local bank. Little background story, I am trying to refinance my 16 unit rental portfolio to pay off current loan and have some extra cash to do a down payment towards an other set of units to add to my portfolio, all the properties are located in the same 40 unit apartment complex. The terms of the refinance are the following:

Loan Amount : $1,284,000 not to exceed the lesser of 60% of the total acquisition cost or 60% of appraised value

Term: 10 years

Interest Rate: Fixed for initial 5 years at 5.25%

Payments: Payments of interest and principal will be based on 25 year amortization

Commitment Fee: 1.0

What do you guys think?

Appreciate all the help and feedback.

Cheers

Emanuele