TIPS ON CASHED OUT RENTAL PURCHASES

[Tim Robbie]

Do I need to figure expenses any differently when purchasing SF or MF rentals with down payment money derived from a cash out refi on my personal residence?

[Scott Trench]

I think that, yes, there should be minor differences in expense assumptions. A MF will likely see more wear and tear, and could see greater average vacancy (although less risk of 100% vacancy) than a SF. 

Depending on the size of the multifamily, you will also have to put down different down payments with conventional loans, or move out of those products altogether! 

Anything I can be more specifically helpful with?