5 Unit+ MF Cash Out and refi restrictions - BRRRR

[Jay Norlund]

Calling all experienced mid range multifamily investors and especially lenders! I haven't been able to find a thread that discusses this in the detail that is as helpful as a few threads have been on 1-4 unit BRRRR strategies.

I had a deal negotiated for two triplexes on one parcel that ultimately fell through but had me doing enough research to realize most of the info out there is generic. So, what issues, rules and restrictions are there for the mid-range of multi-family (5 to say 12 units)?  I know a lot of people rely on cash out refinancing larger multifamily as a strategy but in trying to get financing for the deal and rehab, I came across a lot of issues.

Some questions to get us started (feel free to add your own questions and advice, I would love this thread to be a main place people can go for info on these types of properties):

What issues are there for getting cash out of a commercial loan with rehab costs (whether separate or rolled in)? Timing, LTV restrictions, etc?

When using seller financing, what terms apply for the refi? 12 month wait? Other issues?

How does using a bridge loan or interest only for the rehab portion affect the eventual refi?