Mixed Use Investment Property Refinancing

[Olivia Svrchek]

Hi Folks,

I am seriously struggling to find any lenders that will cash-out refinance a mixed use property. 

The property has two leases to business and the upstairs is a short-term rental on AirBnb.

I have $250K in equity and owe $100K. The DSCR is 3.5.

Overall is is a great investment. My credit score is fine.

But they don't have programs out there for New York state for mixed use that I can find anywhere. Please help if you know any lenders that do this. I would deeply appreciate it. And if you are considering buying a mixed-use property, maybe thing twice.

[Nick Belsky]

@Olivia Svrchek

Being mixed-use in itself isn't usually the issue.  Most lenders have restrictions around the ratio of commercial use versus residential use.  That disqualifies with most lenders.  Since you have mostly commercial use, you'd most likely need to speak with a commercial lender.

The only other problem I am seeing here is the loan amount.  Since most commercial lenders will not entertain anything under $500,000, you may struggle there too.  Some markets may have lower thresholds.  I often see $1MM minimums for NYC, Chicago, LA, etc... if not higher. 

If you are not already working with a mortgage broker, you might want to speak with a few.  More than likely one of them will have a resource that will work for your scenario.  If not, check with a bank or credit union that is local to the property.  Often times, they are more than happy to help finance in their close proximity.

Cheers!