Cash out Refi of Smaller Multifamily Properties

[Frank Chirkinian]

I purchased 7 concrete block homes on 3 aces in North Fort Myers, Florida last Sept. for $225k. 6 are one/ones and then there's a 3/2 main house. Yep a nice deal. Having spend $120,000 on rehab costs we've completed 3 one/one's with new roofs and everything new inside and am finishing the 3/2 which also has a new roof and everything done inside.  I'm now renting those recently rehabbed 1/1 units out and should be normalized with all units rented by end of June.

I'm looking to do a cash out refi of $400,000 on a new valuation estimate of $600,000 (8% cap with fully transparent rental records).  

With the minimum Fanny Freddy commercial loans starting at $1 million, I'm restricted to local credit unions and banks.  Looking for other ideas to refi this property.  

Also, since so many folks are wanting to rent these units (and yes we're very careful about who we rent to), I've spoken to an engineer about building more units on the property and there appears to be entitlement possibilities.

Any ideas Biggerpockets community?