How can I get this equity

I recently purchased some mix use property in York, PA. Two buildings with rental units above and commercial space below. I bought the buildings for 25K a piece and put about 6K into each building. The buildings comp out between 58K and 65K.

The buildings were purchased with seller financing that has a balloon in 1 year. His terms were 15/yr @ 6% on $47,500 ($2,500 down) for a payment of $400 and some change to begin 1 Jan '07. The two rental units are leased at $400/mo each and one commercial space is leased @ $600/mo.

I doubt I can beat his terms and I know I should hold it till it comes due (I am keeping the property for income) but rates are on the increase and if I wait it will be worse. I want to get my equity out with an 80% loan. How would I do this refi or some type of investor type loan?

I have been told I can not refi because I have no payment history on the loan and the note is carried by the seller. I would like to use the equity in future deals.

This are awfully small loan amounts for a commercial loan. There is a poster in these forums named Patty Porter. Do a search of the forums for her name and contact her. She may be your best bet. Good luck.

Thanks for the contact I will try and get in touch with her.
Thanks again


I have not been able to get a hold of her. You are right it is not easy getting a loan of this type for this miniscule amount. I have been calling people all day.

Is there anyone out there that can help me with my situation?

Most people want at least 100K loan amount. I tried in vain last year to find a 60K cash-out on an investment property. Good luck in your search.


Is there any way to link these two properties together and get a single loan for 100K if the appraisals support the 100K? My balloon come due in six months and I want to get out from under it. They are attached properties and zoning says they can be all residential or mixed use. Currently they have renters upstairs and only one of the commercial spaces down stairs is leased.

I am sure they will appraise for that, the comps are running in the low to mid 60K for these properties.

I wish I had studied more on mixed use properties/commercial property before getting into this deal.


That might work. How is your credit? Would you be going full doc or stated? How long have you had the properties? Are they titled in your name?

Chris credit is on the low end 640.

I would be going with what ever would work out DOC or stated.

I have had the properties for 5 months but I have not made any payments yet. The seller was not asking for payments till Jan 07 and I bought Jul 06. (I later found out that I should have made minimal payements at least to show a history)

Yes they are in my name and recorded. Both the note and the mortgage.

There is a doorway on the first floor connecting the two properties if this can be used in any way to combine the buildings.


I have contacted a local commercial lender to ask if it is possible to combine the two properties. I will keep you posted. Have you had any luck tracking down Patty Porter?

No luck on the Patty Porter. I found her info but she has not returned any of my communications.