The possible lending option for property purchase?

[Grace Fukuda]

Hello,

I am in a contract a quad-flex property D priced 225k - inspection is completed, and in the middle of finding a lender. I've already spoken with my local lender but I realized I am short in down payment of 25%(around 20-30k to be safe). I wanted to get some cash out (around 100k, a month ago) as a BRRRR from my two investment properties, and used them as a down payment. However, that plan did not work out. The appraiser valued those properties for around my purchase price (which was 27k and 33k.).

		Planned	Outcome
Current house A	Value 260k, equity 140k left	Paid off HELOC 40k	Outstanding balance
Investment B	Zestimate 70k, appraised 33k	Cash out finance	Not worked due to appraisal
Investment C	Zestimate 60k, appraised 27k	Cash out finance	Not worked due to appraisal
Investment D	Listed 235k, lowered to 225k

My loan officer advised me to cash out refinance my current house A to purchase quad-flex D. Since I have around 140k equity, that should be enough to cover my down payment and others can be used my future property purchase.

My initial intention was to purchase D using refi money from B and C. However, I think I need to focus on repairing those two before submitting another loan application. Partially roof repairing is done. I need to do more flooring and other little minor work.

At this time, my local lender advised me to refi current house A to cash out 75% with 3.2% 15 year loan. That would cover to pay my current loan (3% 15 year, 5.5% HELOC, and etc.). Before proceeding, I want to confirm with you guys if my thinking strategy sounds ok.

Any advice on this matter is greatly appreciated!!

Thanks,

G