Pull money out of Properties for Apartment

I am trying to figure out how to make the leap from the 4 duplexes and 2 single family homes we own to buying an apartment. I found a lender that will refinance 100% on Non-owner occuppied properties.

Is the best way to make the leap to buying 4+ unit apartments to pull money out of the inv. properties and throw it down on an apartment?

What are your thoughts?


Its hard to say. If you pull money out of your current properties to finance a new one you will obviously have less cash flow on your current properties. Then again the cashflow on a larger commercial property may more than make up for that. You will find that in most cases you will need at least 5-10% down on a commercial purchase with 20+% down giving you the best rates. You will have to set up some future cashflow scenarios using estimates of the new payments on your refi’s and on the new property and look at the big picture.

I would stick to 90% on the refi’s if you can…should that be the route you go. You will see much more attractive rates depending on credit. Have you considered selling? I know a few of investors that just sold the residential stuff little by little once they took the step to buying larger complexes.