Real Estate Investor · Reading, MA · Member since 2008 · 124 posts · 15 votes
I have a 3 family that is 50 percent rehabbed...I'm now getting ready to start marketing the property to sell...however I also want to get out of my hard money loan once I have it fully rehabbed and 2 of the 3 units rented...
I haven't listed property yet on MLS bc I have heard if you list a house on MLS in the past 6 months banks will see that and not lend to you bc they know you are looking to sell...
So i know there are others on here who have had this same situation, how have you handled this?
Rental Property Investor · Mercer Island, WA · Member since 2008 · 22k+ posts · 14k+ votes
15y
Is your plan to sell or to hold this? If you're trying to sell, start marketing it and just stay with the hard money loan. If you're going to keep it, start the refi once you reach six months of ownership. If you're trying to sell, it doesn't make much sense to refi because of the costs of doing the refi. Plus, if you do manage to refi, then sell a short time later, you'll burn a bridge with the lender and broker.
If you put it on the MLS and it doesn't sell, you'll also establish a value. If you later decide to hold it and refi, the lender will use the price it didn't sell for as an upper limit on the value.
Real Estate Investor · Reading, MA · Member since 2008 · 124 posts · 15 votes
15y
Primary objective would be to sell to a buyer who would owner occupy, and I would market it to someone who would want to live mortgage free (since the rents of $2400 from 2 apartments would pay piti and other expenses @ $280k price)
...however if I can not sell the property within 3 months I will refi and keep for cash flow...
So I guess the best strategy would be to not list on MLS for the first 3 months, maybe just market it on craigslist and reia's and to buyers brokers...if not sold by month 3 then refi