New Build Multi-Family: Phased Build

[David Edwards]

I have a plan to build out a duplex community, 6 duplexes (12 units) on 1 acre of land that cannot be subdivided. The original idea had been to subdivide the land and build 3 quad-plexes but I met with the city and that's not going to be possible due to the lot requirements so now I am looking at one twelve-plex.

This plan in theory has a four phase buildout:

Phase 1: Buy Acre, finalize design with city (we have preliminary approval but need to own lot to finalize) Start driveway and build parking for 1 duplex, build 1 duplex and assorted land improvement (utilities, sodding, fence, Shed), Rent out

REFINANCE - From Builder loan to Long Term 30 year

Phase 2: Continue driveway and build parking for second duplex, assorted land improvement

REFINANCE - Cash out refinance should allow me to pull out cash due to built equity (numbers check out based on comparable of quad-plexes of similar design relative to cost and maintaining 25% equity), Rent out
Use Cash-out Refi plus additional funds for next phase

Phase 3: Finish driveway including turn around required by city due to length of driveway to meet the needs of a firetruck etc, build duplexes 3 & 4, Rent out

REFINANCE - Cash out refinance should allow me to pull out cash due to built equity (numbers check out based on NOI evaluation of property value, 8 units now so different valuation methodology, while maintaining 25% equity)
Use Cash-out Refi to fully fund next phase

Phase 4: Build units 5 & 6, Rent out

Cash out Refinance to max value where it still makes sense for units to cash flow, laugh my self silly, find another plot of land and do it again.

Here is the question, each phase will take 3-5 months* (variance is due to effects of Corona-19 on builders). Can I refinance the new build this fast as outlined so I can apply cash out refi to the next phase? If not, what's a more realistic timeframe? 

Or... Could I structure an original loan to be phased (multiple draws) with later draws using the property itself as growing equity to power the loan? I have a lender lined up, they want to work with me to do this but while I have worked to save up the cash to fund the first phase equity they have not thus far wanted to spend much time planning this out all the way with me so I'm turning to you guys for thoughts.

Or.. any other ideas... or gotchas I should think about?

Lastly, what do you think of this plan overall?

*This time frame is due to the build methodology which if you have seen my other posts you'll understand is Modular Duplex construction. If you haven't seen and are unaware Modular homes are not Manufactured (mobile) they appraise the same as stick, high quality (due to my vendor), are not HUD tagged, and have a much shorted build time then you might expect if you are thinking stick builds. These also happen to come with a total of 8 years of roof to foundation and everything in between warranty.

Thank you,

-Dave