BRRR - Cash out Stage, LTV max 70%?

[Samir Solanki]

Alright folks, need some help with decision making. 

Background: Purchased a triplex for $200K, Cash in for renovation @ $40K so all in total at $240K. Rented all three units for total rental income of $3,300/month. Just got the appraisal back (which I'm not happy with) at $320K. My mortgage guy is telling me that the max I can do is a 70% LTV on this cash our refi, which after closing costs, puts about $68K in my pocket. I know it's not a bad deal, but I was hoping for a 75% LTV that would put about $84K in my pocket. The interest rate is going to be around 4.2% for 30 years. Am I being too picky? Is this is the highest LTV that I can get for this type of property with this interest rate? Would you go for this deal?

P.S. With the cash out, I'm planning on purchasing another multifamily and applying the same BRRR strategy.

Thanks in advance. 

[Todd Rasmussen]

@Samir Solanki

We have regularly gotten 80% LTV, but always make sure you have the cash flow to support higher equity draw. BRRRR only works if you are picky at every stage of the process so don't worry about that aspect of it. 68K and sustainable cash flow is a great return on your investment. I wouldn't fly too close to the sun on this one and would keep 25% equity in the deal and still be popping a bottle of champagne.