Multi Family Refinancing

[Thomas Ebenhoch]

I own a 3 unit multi family home in Upstate NY, bought in 2016 with a FHA 203k loan. Purchase price was $127K, renovations from the 203k brought the loan total up to $154K. The house was appraised by the county for $160K before my purchase.

The loan mainly covered exterior improvements new siding, new concrete pathways, gutters, etc. I also have renovated each unit and the building is fully occupied, with me living in one of the units.

The unit rent total with me living in one of the units is $1850, it increases to $2700 if I move out.

I really have no idea what the house is worth now, there are not too many comps in the area. But if I had to guess somewhere in the 200-230K range.

My plan is to buy another multi family like this, so I am looking for any advice on refinancing, HELOC loans, cash out refi.

I'm a big fan of the BRRRR idea, but I am just unsure about the refinancing portion. Any help or advice for a guy just starting out?

[Brandon Ingegneri]

There really isn't anything to explain.  You basically repeat the formula over and over again.  Eventually, when you have a large enough commercial line, you will consolidate all of your smaller lines, and you will then use physical liquid cash and your one large line to put yourself what I enjoy calling a "Position of F*** you". Once you have liquid assets with a bank in excess of $300,000 all of the rules change, and then they present opportunities instead of hurdles.  The entire game changes and you are in the driver's seat.