I am searching for BRRR financing in LA. I have a large line of credit and need a refinancing option after the ADU is completed and both the front house and ADU are rented at market rents. With the addition of the ADU properties will have strong cap rates. Using commercial lending models (using rents instead of comps) I am hoping it won't be a problem to get the value to refi out of the property and pay back the line of credit but not sure if thats realistic.
Any suggestions on a refinancing option would be greatly appreciated.
Rental Property Investor · Los Angeles, CA · Member since 2017 · 210 posts · 155 votes
7y
Hey Marty, I've contacted a local banker who was doing refinance loans at 3.5% (this was in last month) and another bper used her for property purchase since the rates were so competitive. I dont know if they'll accept an appraisal value based on income approach instead of sales comp approach but if you want me to send you the banker's info and you can ask her, then DM your email address to me.
Sent you a DM. Thanks for the help. I will reach out to the bank. If you can think of any lenders that use the income approach on SFR rentals please let me know.
Hey Marty, I've contacted a local banker who was doing refinance loans at 3.5% (this was in last month) and another bper used her for property purchase since the rates were so competitive. I dont know if they'll accept an appraisal value based on income approach instead of sales comp approach but if you want me to send you the banker's info and you can ask her, then DM your email address to me.
a little late... but which bank is this refi loan from that offered you 3.5%??