Cash Out Refi post Rehab?

Question

Perspective?  Purchased a 4-Unit in Delray Beach, FL last July with HM (Lending On- they have been excellent)  $520K pp w/25% down- gut rehab with my own cash- now a weekly vaca rental/short term stay lux compound (www.lavidadelray.com).  ARV currently >$1M based on comps and knowing the market.

Opened May 2018-- Despite being off season, already have solid income trending and future bookings.

My goal is to cash out refinance to recoup my cash investment and replicate the process or go bigger into 5+ MF.

Suggestions for financing?

Raymond J. Rodrigues · Answer

@Jill Haselman considering the fact that this is a 4-unit property, it is still considered residential. I would imagine that the interest rate that you obtained from a hard money lender would be fairly high. If you cash-out refinance, your interest rate would drop to the low 5% range, allow you to have more cash flow, and funds to purchase your next investment property.

Andrew Postell · Answer

@Jill Haselman my suggestion would be to post this in the Florida forum.  That way you can get some more local comments type of thing.  I'm sure the recommendation above is ok but if you would like more that would be my suggestion.  Just an idea.  Thanks!

Mitchell Jaworski · Answer

Not sure if you are looking for private or traditional lenders, but Lima One Capital is a private lender that does 30 yr loans on investment properties.   You can also go the community bank route a look for a portfolio loan, which will give you flexibility to expand/borrow on more properties.