3 ms·
> They haven't been building equity. Per the docs, yes. But any capital improvements made are building equity and would affect the LTV of the loan when it com
by jgalt212 3y ago
> They haven't been building equity.
Per the docs, yes. But any capital improvements made are building equity and would affect the LTV of the loan when it comes time to refinance (or default).
- bombcar 3y agoThe theoretical use of interest only is to acquire the property and upmanage it to increase rents (or for a hotel, utilization and nightly stays) since the value is directly based on monthly incomes. Then refinance and-or sell.
- jgalt212 3y ago> increase rents Class A office space rents for much more than Class B. You can convert (usually, but not always) Class B to Class A with capital improvements.