cash out refi on a 2-unit investment property

5 Replies

I am looking for options to cash out some equity from our 2 unit rental in the east bay. I talked to some banks and not getting very far because it is cash-out and multi-family. And when possible, am getting a huge interest rate like 5-6%, is that expected?

Also, how would the appraised value be calculated, is there a simple formula using the annual rental income?

Any pointers are appreciated thanks!

Originally posted by @Sven Sante :

I am looking for options to cash out some equity from our 2 unit rental in the east bay. I talked to some banks and not getting very far because it is cash-out and multi-family. And when possible, am getting a huge interest rate like 5-6%, is that expected?

Also, how would the appraised value be calculated, is there a simple formula using the annual rental income?

Any pointers are appreciated thanks!

 Rates are north of 5 for that scenario, but not at 6.

Residential appraisals are based on what other similar properties are selling for. Your lender should be able to 'coach' you on how to help the appraiser hit the highest value possible. 

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Thanks @Chris Mason would the rate be lower if there was no cashout component? If that is true, could I refi with cash out now at 5ish percent and then in future, just do a refi without cash out to get a lower interest rate?

Originally posted by @Sven Sante :

Thanks @Chris Mason would the rate be lower if there was no cashout component? If that is true, could I refi with cash out now at 5ish percent and then in future, just do a refi without cash out to get a lower interest rate?

 Yup, you could do that. No guarantee for where rates will be in six months, however.

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