Refinance Help Commercial Multi-Family

[Adam Danes]

Good Morning,

I have a 6-unit (need commercial loan) property located in a rural area of Ohio. My partners and I do the BRRR strategy, and bought it very distressed, fixed up with cash, and have been looking to do a cash out refinance. It's been over a year and we are having issues refinancing. We cannot do a DSCR loan, which would be preferred, but they consider it a rural location and will not invest. We tried a commerical loan, but based on taxable income, which we try to keep as low as possible, our debt service does not add up. The banker just said that she can see great credit scores, but with the amount of debt, the income doesn't come close to covering the loans. Has anyone found themselves in this situation? What did you do to refinance. We are trying to get creative and refinancing would very much help us out.

Thank you for any help you have. 

[Remington Lyman]

Quote from @Adam Danes:

Good Morning,

I have a 6-unit (need commercial loan) property located in a rural area of Ohio. My partners and I do the BRRR strategy, and bought it very distressed, fixed up with cash, and have been looking to do a cash out refinance. It's been over a year and we are having issues refinancing. We cannot do a DSCR loan, which would be preferred, but they consider it a rural location and will not invest. We tried a commerical loan, but based on taxable income, which we try to keep as low as possible, our debt service does not add up. The banker just said that she can see great credit scores, but with the amount of debt, the income doesn't come close to covering the loans. Has anyone found themselves in this situation? What did you do to refinance. We are trying to get creative and refinancing would very much help us out.

Thank you for any help you have. 

 You can try to call around to local credit unions near the property and see if they will give you more favorable terms. That is typically how I get rural deals done