I am finally ready for my first Refinance! I am still uncertain of the following:

After 3 long years of owning a stabilizing my 24 Unit, I am finally ready for my first Refinance! I am still uncertain of the following:
What Cap rates will a lender consider? As interest rates have come down so have Cap rates to some degree, also it being a seller's market.
Is it possible to get an interest-only Loan for Multifamily?
Since we just stabilized our property how many months of new cash flow (with higher NOI) would a lender be satisfied with to use that as a base for calculating our NOI from our rent increases. ie. Would 3 months of new Cashflow be sufficient?
Thanks for your help all!

Lease term mix will matter. If all the leases expire in 90 days, you will likely need 180 days of cash flow. One lease cycle start under covid is not going to impress a lender unless you have other assets.

Paras. Congrats on owning a 24 unit building and creating value and improving the property. I believe you are ready for a good commercial bank relationship. Or commercial section of a credit union. Depending upon your deposit relationship the rules vary among different banks. Ive had a banker with an MBA turn me down for a loan with great financials because he didnt understand real estate investing. The bank next door approved me for a loan with great terms because the lender not only understood real estate investing but knew the pulse of the town. Talk to community banks first. Let them tell u all the documents you need. Than have a package ready for everyone. Good luck

Thank you Hasmukhbhai for your wise words of wisdom. Much appreciated!

I looked at your posts. You have a lot of issues to deal with on going basis. I suggest that you join local Real Estate investors group or property management assos. Be friend some more local property managers who can advise you and keep you up dated on laws and on going changes please. If you just want to chat sometime. Ure welcome to call me. Id be happy to share any info.

I have found that lenders are using 3 months of NOI, fannie and freddie offer IO.

Thanks so much. Did you go Credit Union or Fannie/Freddie or 3rd Party Lender?

Fannie and freddie, though as a previous person posted, check first with local banks. Fannie and Freddie have great IO and rates but often have high yield maintenance fees (a penalty for a refi or sale before the loan is up).

Thank you again!

What other have said, work with local and regional bankers. Ones that have particular experience is rental housing of projects of your scale. The first question to ask - “so, tell me about your most recent multifamily transactions....”

1. DCR of 1.05 to 1.50
2. Yes
3. 90 days minimum; but will look at more.

Find a good commercial mortgage broker, they will help you find the best loan for you and they will go through the refinance process by your side