Investor · San Francisco, CA · Member since 2015 · 302 posts · 206 votes
6y
Yes you could Bellman but it really depends on the lender and the property. I will tell you that what you describe there would be very hard to get, especially in the current environment.
If you wrote this instead, " Could I purchase a property with a down payment of 25%, recourse loan, take title in the my own name and I have great credit and solid income?" Then I think you would be more on the realistic track of what would actually could get a lender to agree to. Especially the LLC and non-recourse parts, they don't like that. (assuming we' talking about a small 4 units or less residential property?)
As far as the 2nd part, I've done 3 cash out refis and yes I had to wait 6 months. However I've noticed the seasoning gets a little looser once you get up to a certain point. For my duplex I did have to wait 6 months but for my 6-plex I was able to start the process right after I got full occupancy and the cash out closed 2 months later.
Yes you could Bellman but it really depends on the lender and the property. I will tell you that what you describe there would be very hard to get, especially in the current environment.
If you wrote this instead, " Could I purchase a property with a down payment of 25%, recourse loan, take title in the my own name and I have great credit and solid income?" Then I think you would be more on the realistic track of what would actually could get a lender to agree to. Especially the LLC and non-recourse parts, they don't like that. (assuming we' talking about a small 4 units or less residential property?)
As far as the 2nd part, I've done 3 cash out refis and yes I had to wait 6 months. However I've noticed the seasoning gets a little looser once you get up to a certain point. For my duplex I did have to wait 6 months but for my 6-plex I was able to start the process right after I got full occupancy and the cash out closed 2 months later.
I am thinking about multi-family apartment buildings as I want to go big.
I believe lenders focus mainly on the income and DSCR so a 25% down payment, non-recourse loan and closing in an LLC while later getting a cash out refinance should be possible right?
Investor · San Francisco, CA · Member since 2015 · 302 posts · 206 votes
6y
Ah I see. Well the LLC part is more realistic then. I will say this at the moment it may be hard (and expensive) to find non recourse. I just shopped around to refi a multi family and all I could find was recourse. Again that's just because of the current market situation.
Also I get the "going big" thing. I'm the same way. I don't know if this is your first deal or not but I will say I am DEF glad I went with a duplex to start. Looking back on the learning experience of the duplex makes me think that if I had went with a big building as my first one.... well, it would not have been good.
Investor · San Francisco, CA · Member since 2015 · 302 posts · 206 votes
6y
on second thought maybe I'm just being dramatic and I could have done ok by jumping right into a bigger multi family. With the wealth of free knowledge on this site perhaps you could be ok to go big? You'll have to decide that for yourself or find someone who skipped to the big stuff for their first deal and ask them how it went. I personally didn't.
Anyway, back to your original question, I've successfully refinanced 2 large (more than 5 units) multifamily properties without waiting the 6 months. They both are in LLC's but they are both recourse loans. Also both are 70% LTV. Good luck to you...