Anyone have experience with cash-out refinancing a mobile home park under $500,000? Every bank I find wants 30% down. I was thinking that I will do the deal, then refi out of it after the rents are raised to get my equity back out of it.
I’ve financed several. None that big however the mechanics are the same. Give us more details. It appears your lender is wanting 30% equity? If thats the case your rent income will have to increase substantially. Appraisals cost so much these days you’ll want to be sure of value before you order that second appraisal in hopes of cashing out. You might try & find a local investor. You’ll pay them a higher rate however if you need the money to structure you deal I suppose it won’t matter.
I’m really looking for a bank with great terms similar to conduit lending like Frank always talks about.
The problem with conduit is that they won’t loan out less than $500,000 because it takes the same amount of time, energy, and due dilligence as a $10 million loan. This park is only worth $430,000 at a 10 CAP on lot rents only. $250,000 is currently owed.
I already own the park, but want to pull cash out to contribute to a down-payment on another park without selling. . I’ve heard of an FHA 207m loan for land lease communities, but I’ve never talked to a single park owner that has done one.