Anyone doing BRRR using commercial loan?

[Nick Rose]

I've run across a property that has two 4 unit buildings on one property. (8 total). One building needs renovation.  

Example:

If cash purchase price is 70K, renovation is 40K. I rent out all 8 units. NOI is say 25K.

If I buy all cash for the property and renovate - does anyone know a method to get my cash back out and secure a loan?  

[Mike Creswell]

Nick Rose I just completed a brrrr with a sfh, bought house for $34k put $10k in rehab, all in $44k. House appraised for $80k my small bank that is a portfolio lender will give me 75% of appraised value. So they gave me $60k, I was able to get all my money and then some. What would your arv be after rehab? Most banks will only do 65-75% of arv. Small bank or credit union that is portfolio lender is your best bet. We have an llc and got the commercial loan on this house. It's been my experience that your rate may be a little higher but it seemed a little easier to obtain compared to a regular loan. Hope this helps and good luck!