Refi or Sell? What is Best for your portfolio?

🔄 Should You Refinance or Sell Your Multifamily Property in 2025?

As we hit mid-2025, many multifamily property owners are asking the same question: Is it smarter to refinance or sell right now? The answer depends on your investment goals, your asset’s performance, and where you believe the market is headed.

With interest rates holding steady (for now), rent growth leveling out in some markets, and buyer demand shifting, it’s time to reassess your portfolio strategy.

📉 The Case for Refinancing

If your property still has strong fundamentals—high occupancy, stable cash flow, and potential for rent growth—refinancing might make more sense than selling. Here’s why:

• Preserve long-term upside: If your market is still appreciating, holding on could increase your equity over time.

• Improve cash flow: Refinancing at a lower rate or extending loan terms can reduce monthly debt service.

• Pull out equity tax-efficiently: A cash-out refinance allows you to access built-up equity without triggering capital gains taxes.

• Wait out a tighter buyer pool: With fewer aggressive buyers than in 2021–2022, refinancing may let you avoid a "soft" sale.

🚨 But be cautious: today’s rates are still higher than pre-2022, and some lenders are tightening up underwriting. Make sure your debt service coverage ratio (DSCR) and property performance support the new terms.

💰 The Case for Selling

On the flip side, 2025 may be a good time to exit and reallocate—especially if:

• You’ve maximized the value of a recent renovation or repositioning

• Cap rates in your area are compressing again, offering peak pricing opportunities

• Operating costs are eating into your margins (insurance, taxes, maintenance)

• You want to trade up via a 1031 exchange into a larger or better-performing asset

• You’re fatigued by self-management or shifting tenant demands

We’re seeing renewed investor interest in smaller, stabilized properties—especially in Florida’s growing secondary markets. If your asset checks the boxes, now could be a smart time to sell before rates or taxes shift again.

🧠 Strategic Questions to Ask Yourself

• What's your current cash-on-cash return vs. what you could earn elsewhere?

• Would a sale free up equity for a better investment?

• Are you prepared for potential regulatory shifts (rent control, tax policy)?

• Is your current loan maturing soon?

📣 Our Take at Atomic Commercial Group

If you’re on the fence, you don’t have to guess. At Atomic Commercial Group, we help multifamily owners evaluate:

• Your property's current market value

• Refinance options and debt coverage analysis

• 1031 exchange opportunities

• Off-market buyer interest

Whether you’re planning to hold, sell, or scale, we’ll help you chart the smartest path forward—with no pressure.

🔖 Disclaimer 

Each brokerage is independently owned and operated.

📞 Let’s talk strategy.
Richard Bettencourt – +1 772.643.0889 | Rick.Bettencourt@evrealestate.com
Thomas Panos – +1 786.473.5349 | Thomas.Panos@evrealestate.com
🌐 www.atomiccomgroup.com

Engel & Völkers Hutchinson Island – Commercial. Competent. Connected.