BRRRR STRATEGY In Rhode Island

[R Cruz]

Hello everyone. Its been a while since I've posted on Biggerpockets but I'm constantly consuming video content on YouTube.

My name is Ray and I'm a Real Estate Investor in Rhode Island. I'm currently finishing up a Rehab on a 7 unit (2 Property on 1 lot) and will look into doing a Cash-out-refinance towards the end of October. I purchased the property with a HML back in April 2021 and will finish renovations on 3 of the 7 units within several weeks. I've added Hard wire smokes ect. and have to admit I'm over budget with prices of materials being so high.

One of my concerns is that the Building Department has property as a 3 and 2 family but the Tax Assesor has it as 6+ (which causes me to pay high taxes). Would this effect my cash-out-refi ?  Even with my Rental income of 7 units with leases in place?

What will the banks ask for? and will the value still be determined by the NOI divided by the Cap Rate?

If so, I'm hoping to get a 75% LTV on the refi so I can pay off HML, recoup alot of my rehab cost and move on to the next project.

Thanks.