Can you this question about refinancing a 7-unit?

4 Replies

I'm interested in refinancing a 7 unit property. I owe ~220,000 on the property. It was purchased just about 1 year ago so as you can imagine, very little principle has been paid down. However, since it is a 5+ unit, shouldn't I be able to evaluate it based on cash flow? If so, the property at a cap rate of 10% would be worth $420,000 very conservatively. Even if I can only take out at 70%, that would still give me about $70k after closing costs to reinvest.

Has anyone in Maine found a lender who will refinance this way?

Can anyone else share an experience refinancing a similar property? Has the bank required a seasoning period before refinancing?

@John West   For my 5 unit in VT that I got appraised about two years ago, they did the appraisal by both comps and income but weighed the comps more heavily.  Also $1600 for a commercial appraisal.  Not sure how much more different it would be in Maine.

Good luck!

@John West There are a number of lenders in Maine that can work with you to evaluate the property. The banks are tightening up how much they will allow to be cashed out and also underwriting with larger vacancy expectations, but it sounds like you have a deal that might work for a number of them. I would recommend you connect with:

Karl Suchecki at Gorham Savings

Alex Lopes at Bangor Savings

Joe Delano at Bar Harbor

I can't send contact info so I will send that to you via message. They may ultimately have someone on their team work with you, but let them know I sent you and they will take good care of you.

Good luck!







yes kennebunk savings bank ask for seth sherwood.


I am in process refi 5 unit i converted to 10 unit and only needed proof of lease which appraiser did verify rents and bank statements.

They dont allow cash out refi if you want control cash in lump sum to spend willy nilly. Only refi to buy more property, business or expansion upgrade repairs etc.

They requested 1 yr seasoning stabilization of rents. But may do sooner if numbers work.