Hello I recently split a single condo unit in a triplex for 64,000 (32,000 for each party involved). The house is appraised at 93,000 and I was wondering how I would determine how much equity I would be able to pull out.
Real Estate Agent · Columbus OH · Member since 2018 · 1k+ posts · 1k+ votes
6y
Hi @Glenn Pierce I've never heard of anyone doing something quite like that...very creative! If I understand your question and situation you have a total of 64,000 cash invested in the property and it appraised for 93K. From my understanding, and I am not an expert so take this with a grain of salt, the equity in the property would be the difference between the appraised value and what you "owe" on the property. So in theory if you own the property outright AKA you don't have a lender that holds the note on the property then your "equity" in the property is the full 93K. So you should be able to take that to a bank and cash out refi 80% of appraised value. So that should be somewhere around $74,400. That obviously doesn't take closing costs or fees into account but at first glance looks like you'd be able to pull all of your capitol out!
Let me know if I didn't understand correctly, or misinterpreted the situation.
Investor · Sherman Oaks, CA · Member since 2008 · 6k+ posts · 3k+ votes
6y
What is the equity? Subtract the loans and liens and subtract the costs to sell to cash out. The cost to sell are generally 10% to 12% of value with the commissions and other costs.