In today's market the most aggressive multi-family lenders are Fannie/Freddie. Unfortunately parameters have tightened recently and the maximum loan to value for a cash-out request is 75% LTV. The issue on timing is that they are now requiring a 6 - 12 month period of stabilized occupancy levels when underwriting vacancy/expenses. That said, in order to increase the property's value enough to cash out, you will need to improve the occupancy/cut costs and prove it out for a longer period than what we used to have to do (used to be able to get away with 90 days or less). Another thing to consider here is the prepayment penalty of the old loan. One advatage of the GSE programs is that you can take out additional proceeds twice (at least with Fannie) once you have increased the property's value. You can do this without prepaying the existing note, you are simply adding to it.
If you have an interest in looking at Fannie/Freddie financing options, give me a call at 704-686-4634.
Jun 4, 2009