BRRRR using TURNKEY Multifamily

[Chris Harrison]

Curious if anyone has tried to pull their investment out of a multifamily property in a refinance in order to reinvest in another property. Can BRRRR work with these types of properties, also does the additional margin going to a turnkey company knock this plan out of whack? My rough estimates say it would difficult to get back 100% unless you had a real sweetheart of a deal. But +75% is a huge shortcut to your next investment. I'd like to know if anyone has had success using this method to scale remotely.

I've been reading the forum and going to meetups whenever possible but this is my 1st post. Curious if anyone has gone down this road and what was your experience. I'm researching strategies that might allow me to keep working my super time consuming job which I love.

Thanks so much for all the info and expertise I've gained so far!

[Nick B.]

Multifamily property (I assume 5+ units) can definitely be cash-out refinanced. This requires an owner to implement some kind of value-add strategy to increase the rents and NOI high enough to justify higher value and higher loan proceeds. However, value-add is an opposite of turnkey where virtually no value is left for the buyer.

As far as net refinance proceeds, the times of 100% (or even 75%) are over. My personal experience has been appx. 50% on three deals (2015-2017 time frame).