Cash-Out Refi, 25-Year Amortization
StackSource recently arranged financing for a cash-out refinance of a 31-space mobile home park located in Washington, Iowa. The out-of-state sponsors originally purchased the property for $571,000 in 2020 and increased the value by adding new units, upgrading roads, and increasing effective property management (a perfectly executed BRRRR strategy!). The occupancy at the time of application was 66%. Capital Advisor Jaideep Chadha was able to offer these sponsors multiple fixed-rate options: 5-year fixed at 4.8%, 10-year fixed at 5.2%, 15-year fixed at 5.4%, or 20-year fixed at 5.65%. He was able to close with a 25-year amortization and no prepayment penalty.