Refinance Multi-Family Properites to buy a Commercial property

[Karla Thomas]

Hello, BP. 

I hope I can get some great advise with this situation. 

A few years ago, I purchased a SFH in an up and coming area. I acquired a significant amount of equity and sold in 2015. I used the equity to purchase a few Multi-Family properties in another state (8 units total - (1) 4 unit bldg, (1) 2 unit building and 2 SFHs). I paid cash for the properties and rehabbed to rent them out. I took a year off from my job, paid for grad school and slowly worked to get everything in place. It wasn't easy to say the least but I fought tooth and nail to get it done. Fast forward to 2017, my units are now rehabbed, rented and my positive cash flow is ~$5,000/month. I recently went back to work to generate some additional income. After it was all said and done, since I was unleverage with all properties, I used up most of my liquid. If I had to do it all over again, I would have leveraged the properties. My original plan was to invest and hold for the long term. I am now looking to invest in a commercial property to diversify my portfolio and use the property to start a business in about another year or two. I would also like to continue to buy more MF properties but commercial is my sole priority at this time. Tall order, huh? :)

My question:  Would it be realistic to speak with a bank about refinancing my MF units without two years of rent rolls and just starting back to work after a year or so without income?  Should I even think of refinancing my MF units to purchase the commerical property?  I have enough equity in the 4 unit bldg to buy a small commercial property and use the rent and pay check to slowly rehab the property over time (again unleverage construction) or is it best to do a construction loan for the commercial property?  I have never worked with commercial properties and pretty nervous about entering this market.  

What makes the most financial sense?  Any assistance would be greatly appreciated.  Thanks!!