How to pull out money from a 2 flat that isn't your primary residence?

9 Replies

A friend of mine owns a condo that is his primary residence.  He owns a 2 flat that he bought a few years ago in a very hot Chicago neighborhood and has gone up in value by almost $200k since.  He wanted to pull out some money to use towards buying another building.  His lender said since it isn't his primary residence he can't do that.  Does anyone know why?  Is there a good way to pull out money from an investment property?

Like the Chicago "two flat" "three flat" terminology.  Can't think of anywhere else in the country that uses these terms to describe multi-family properties.  

Originally posted by @James R. :

Like the Chicago "two flat" "three flat" terminology.  Can't think of anywhere else in the country that uses these terms to describe multi-family properties.  

I think it is because they are stacked one on top of the other and each residence is a whole level of the building, whereas a duplex is usually side by side. I think its kinda charming local vernacular too. 

If he only has those two properties then a cash out refi should not be an issue if his credit and DTI are up to par. I have a few lenders I can recommend if you want to PM me

Create Lasting Wealth Through Real Estate

Join the millions of people achieving financial freedom through the power of real estate investing

Start here