Strategy to financing Multifamily

[Musammath Khan]

Hi folk! I hope all are well. I have a strategy on my mind for my RE investment. I would like to share it and desperately want some suggestions on it. I would really appreciate if the experienced RE folks share the Pros and Cons of this strategy.

I am planning to buy a multi family in Bronx. I was thinking of getting 80% of the value financed by a bank and (20% or 15%) down payment by Private money lender or (Hard money lender if I don't find a PML). After a year, I'll refinance and pay of the first bank mortgage and the down payment money to the PML or HML(with interest). I also have additional funds available to me in case I am not able make enough cash flow to pay of the interest. The benefits I think I'll have-

1) low interest and APR

2) No monthly PMI

3) No Upfront Morgage Insurance( Which are thousands on the price of the property I am looking at)

Now I would request you guys to kindly share your valuable thought on this strategy. Thank you in advance.