Best refinancing options for 4 units on single family lot

[Joshua Ibarra]

Thanks in advance for any help!

We bought 4 units a year ago here in Kansas City that needed much work. The lot is technically zoned for single family but 3 smaller houses were built 40 years ago and are grandfathered in. After about 6 months, we finished rehab and starting putting tenants in place. 

All four units are rented out bringing in $2,200 a month between the 4 units. We think it is valued around $200,000 and currently only owe our hard money lender $105,000 as we pay monthly on interest. However, we are coming up on 1 year and he wants his loan back. 

We have talked to 2 different banks locally who will not cash out refinance because it isn't zoned commercial so it is tough to appraise.  What is the best option to refinancing at this point? Try to get a small business line of credit to pay him off through Lending Tree? Raise $100,000 between family and friends? Is there a bank that is interested in this loan? We are currently paying 12% so if we could get something lower then that we would be able to pay it off in the next 2-3 years. 

Any advice is greatly appreciated. 

[Jake Riordan]

Probably just do a commercial loan if can't get residential.  Try Bank of the West as they've got a 15 year fixed or 10/25 for 4 units & under (5+ units the do 10/30).