Reflecting on my first 5-unit deal and some refinancing questions

[Andrew Graziano]

Hi all,

I purchased a 5-unit property last December. The property consists of a farmhouse converted to 4 1-bedroom units and a single-family home on a 5.5-acre lot in a semi-rural suburb of Buffalo, NY. I ran into some issues throughout the process but overall it has been a great learning experience and at this point, it's looking like it will be quite profitable.

As I near the one-year anniversary of this deal, I'd like to reflect on a few hard-learned lessons:

-The renovation was slightly more than anticipated but within reason. The main source of added expense was a contractor stiffing me.

-Finding contractors for a "slightly out-of-market" property can be difficult, no one wants to travel.

-If you get a bad feeling about a contractor, terminate the relationship early and move on. Once you find a great contractor, treat them like gold.

-The wants and needs of semi-rural tenants are significantly different than their urban counterparts.

-A 40-minute commute to your property is more significant than it sounds.

-I will never purchase another single-family again.

As the stabilization process comes to a close, it's now time to start thinking about refinancing. I have vetted a few local/regional banks with varying results. The best bank so far seems to be Upstate Bank, out of Rochester, NY. They are willing to do 80% LTV and have been reasonable with cap rate ranges. Has anyone used them before?

I suppose I'm just looking for a bit of guidance in this part of the process. If you could go back and give your less-experienced self a couple of tips, what would they be?