Cash out of existing 6 unit property
Good morning Alison,
Thank you very much for taking this question. I am a real estate roker in Sarasota Florida. We own a six unit apartment building here in Sarasota free and clear. I would like to put a loan on the property to pull some cash or sell the property. We have another investment property we would like to pursue.
Naturally, being self-employed (broker associate with Coldwell Banker) and despite an 850 credit score and significant assets in the bank getting a commercial loan is proving to be a challenge, not only for me but for potential buyers. Thoughts?
Once again thank you so much!
Thank you so much for visiting our site and posting on the forum. Sounds like you’re doing well in real estate and have a great FICO score. I know it can be tricky to qualify for a loan when you’re self employed. There are a few options you can take: you could try getting an investment property line of credit on the property that you own free and clear. If approved, you can typically use the money for whatever you want, including purchasing another property. You could also look into getting a cash out refinance on the six unit property. Both of our articles go into more detail on what terms and qualifications to expect, as well as lenders that offer them. I hope it works out. https://fitsmallbusiness.com/investment-property-line-of-credit-loc/
All the best,