Finally buying first property and need ideas

[Kurt Kleespies]

Hello BP! 

I am pretty new to rental investing but I was able to recently get a nice duplex under contract and it closes on the 17th.  I made a cash offer and quick close to get the deal locked up.  What I want is to cash out refi the property quickly so that I can continue to grow my rental property business.  I am looking for input and creative ideas on finding a lender that will hopefully do 80% cash out refi based on appraisal value of the property.

Background info:

* The property is being purchased at $97,500 and will likely appraise around $117k-122k.  Doesn't really need any renovations....units are clean and new carpet, everything functioning, good roof, vinyl siding, etc.  All modern.  Built in 1980.  I would like do a few things like some security cameras outside, a little landscaping, etc because I'm a little picky and want my properties to stand out.  Currently rented through May 31, 2021 to 4 college students.  Each unit is 2 bed/1 bath.  Laundry in the building.  Only 2-3 blocks walking distance to local state college.  Smaller midwest community.  Good neighborhood and safe.  Cashflows about $200 per unit currently but I should easily be able to bring that up to $250-275/unit in the spring.  Previous seller was managing at a distance and wanted out and quickly made sure it was rented so they could sell easier.

My personal info on the deal:

* 804-809 credit score depending on reporting agency

* I own my home outright - Approx $600k value between home and business building that I own personally on the same property

* I own that other business solely and it has a $200+k business loc tied to the home - interest only.  Low usage currently but can range from $0-$150k usage very quickly up and down depending on purchasing.  Liquid tangible assets for sale around $240k+.

* No other loans.  CC's are strictly utilized for instant purchasing power and rewards and are paid off each month.  No other debt.  Conservative frugal mature adult.

* Problem #1:  I am self employed and have been for over 13 years with 2 different businesses (one I sold).  Banks hate self employment.

* Problem #2: Like any good business owner, I take advantage of being a business owner and keep my income low (legally).  Banks also do not like my income on paper when looking at borrowing power based on debt to income even though my debt is low.

* Bottom line, lots of equity in my personal property, very low debt, lots of tangible assets in my business, equity in my business but I still need that loc to make vehicle purchases (larger ticket purchases) to sell.

* Need: I need creative ways to finance rental property deals that I want to buy and hold for 20+ years for retirement.  I see lots of partial options but it comes down to working with the right lender that won't stick it to me on rates and will understand that I want to grown my rental portfolio conservatively but dramatically over the next 5-10 years with them on deals in communities with one or more colleges.

Recommendations on banks/CU, private lenders, where to look, how to structure, etc.  If you have been in the same situation or even have ideas for one part of the situation, I would really appreciate any help that you can provide!  The self employed part is usually the hardest part to get past.  W2 income makes it much easier for most people in the loan underwriting process but I love what I do and I want to be able to grow my RE investments at the same time.

Thank you in advance!