Refinancing a Commercial Multifamily Chicago

[Keisha F.]

Hi BP! I'm looking to purchase a commercial multifamily property on the south side of Chicago, buying cash for $100k with a HELOC. The property is in good condition, cash-flowing..fully occupied. Buying this low with cash, it already has equity built in. My realtor says it's worth at least $220k. I was hoping to use the BRRRR method to purchase, rehab, and refi but the property is in good condition and it doesn't make since to do luxe cosmetic upgrades because the neighborhood doesn't call for it yet. I called several banks to see if I could refinance shortly after purchasing but banks are telling me that they will only give me 80% of what I paid for it, not what it would appraise for. I was also going to purchase with cash from the HELOC, use the rental income to make the HELOC payments, season the property for a year, and then attempt to refinance. This would be my 2nd buy and hold but my first commercial multifamily investment property so I want to make sure I'm flushing this deal out fully. Any thoughts or suggestions?