Refi and finding another unicorn

[Erin N.]

Hello all,

I'm a newbie (2nd post), and I just really appreciate having this forum and all the wise folks who take the time to participate!

First of all, I would like to show off my fancy new unicorn that I bought last November. This was my first multi-family investment property, and it's been awesome so far!

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Property type - 2 duplexes
Fannie Mae REO
Purchase price $369,000 (includes $40k renovation)
Financing - FHA 203(k)
Down payment - $8559
Out of pocket renovation - $20,000
Rebate - $1500

Final out of pocket - $27059

Here's the monthly cash flow -

Duplex 1

PITI - $1467.50
Unit A rent - $1100 (below market - this is a family member)
Unit B rent - $1250
15% vacancy/maintenance reserve - $352.50
Net income - $530

Duplex 2

PITI - $1467.50
Unit C - owner occupied
Unit D - 20% personal use, 80% vacation rental - $1500 (average)
15% vacancy/maintenance reserve - $225
Additional VR expense - $450
Monthly loss - $642 <--- Not quite living for free, but not bad...and my in-laws have their own apartment when they visit!

Once I fulfill my 12 mo owner-occupied requirement, that's where things get really interesting:

Unit A rent - $1400
Unit B rent - $1250
Unit C rent - $1300
Unit D rent - $1200

15% vacancy and maintenance reserve - $772.50
PITI - $2935
Net income - $1442 <----- SWEET!!

I know I'm not factoring in some other benefits like depreciation and tax write-off, etc. But I'm just trying to keep this basic for the thread.
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As you can probably tell, I like a highly leveraged, cash-flow positive type of investment. I HATE using my own money to buy anything!

This is where I need some advice. I want to buy another multifamily property, and I want to get the most out of every dollar I have. I am fairly certain that my property now will appraise for $480-$510k

My questions:

1. Can I refinance to conventional from FHA (considering seasoning requirements)? Is this a good idea? I wanted to open up the possibility of buying my next property with FHA 203(k).

a. If the answer is yes, does that change if I want to do a cash-out refi?
b. I need to replace all 4 HVAC systems. Can I work this into a refi ? Is there a renovation refi that would use ARV appraisal value? I just have no idea.
c. What else am I missing regarding refi? I just am really uninformed about financing, and I really need to learn!

2. What else am I not thinking about? Combined LTV of all properties I own...not sure of the rules. What else? I don't want to shoot myself in the foot and end up in a situation where I can't finance a new purchase.

3. Other than FHA owner-occupied, what are other ways I can buy a new property with as little money down as possible? I haven't really clicked with any traditional or residential investment mortgage lenders/brokers. Honestly, they all act like I'm bugging them with my questions.

Thank you very much for all your help!