Current seasoning period for a refi out on an 8-unit?
Hi all,
Browsed several posts in this section, but didn't quite get my query answered and would like up-to-date responses. If I missed a current post, please feel free to link it to me.
Anyway, I'm currently evaluating an 8-unit complex that should offer me the ability to refi my money back out of the deal. We're looking at using a commercial loan for acquisition, and then a refi at the new appraised value to pull out our original money. The work involved is mostly raising rents, and I'd guess maybe $25k-$30k in capital improvements to update some units on turnover. Most of the units on on MTM leases, so rent bumps can theoretically happen pretty quick. When talking to a loan broker, he said I should expect a 12 month seasoning period, starting at acquisition. Does this sound right? I'm hoping to get the property stabilized and flowing in a much shorter period, and would like to be able to refi to pull out the money sooner (like 6 monhts), if possible.
Insights are appreciated. Thanks.