Cash Out Refi on Four Unit Current Conventional Loan

[Matthew Dunn]

Dear Fello BP Community,

I am somewhat new, we've had our first fourplex for around 6 months now and have just completed rehab on two of the four units, with the plan to rehab the remaining two. We've had some great success with increasing the rents so far, both original units pre rehab were pulling in $675/mo, after remodel we are at $995 and $1,100 respectively. However, they both had a LOT of rehab, we spent $14k on the first one and $16k on the second, with new kitchens, bathrooms, appliances, flooring, paint, lighting, electrical panels. We've also just replaced three complete HVACs for $9k. So far we are at around $43k in rehab including landscaping and exterior repainting. We will be starting rehab on the third unit in January and this needs around $10k-$11k. The last (fourth) unit will be around $7k. This puts us at around $60k total rehab. With all of this calculated with new increased rents, we will be at around 12.7% CoC and $1,365/mo cashflow at a cap of 9%.

We used a HELOC from our primary residence to pay for the rehabs and we would like to pay this off ASAP, so I was considering our options with a cash out refi. We purchased with a conventional loan at 4.8% with 20% down, purchase price was $275k. We owe around $204k, we've increased rents from $2,765/mo to potentially $4,100/mo. With the value adds done, I would predict the ARV to be around at least $350k, but this is being conservative and not factoring the rent increase to the value.

Do these numbers sound feasible for a cash out refi? Any other approaches recommended? 

Many thanks!

Matt