Buy Multi-Family with Cash out refi

[Bill Pate]

Hi,

So I am looking at purchasing a triplex.  For some background I already own 7 rentals and have had them for 12 years.  The tripex is in an A neighborhood with really good schools.  There is a single bedroom, two bedroom, and three bedroom unit.  Market rent for them is $550, $650, and $750+(Three bedroom rentals in this neighborhood are rare).  I think market rate for the three bedroom is probably $900+, but I am basing my cashflow worksheet off of the lower numbers.  At the lower numbers with a 15 year loan it will still cash flow about $650 positive per month.  I would need to do a cash-out refi on one of my other properties and I included the payment for the refi into my cash flows for the triplex bringing the total monthly cash flow to positive $300.  Which I would put into a maintenance and vacancy fund as I do for all my properties.  All of my previous rentals except one were purchased with cash, so getting two mortgages worries me some.  The property overall is in very nice shape, and it's only 10 mins from my house.  It also has a newer 30'x40' garage which I desperately need for storage space.  Has anyone done a cash out refi to use as a down payment for another property before?  I am thinking about putting my offer in with a contingency about the cash out refi, and the mortgage, but I don't know how to word it.