Commercial Lenders - Is this feasible?

[Brian Levredge]

I'm looking at buying a small, 8 unit building in the SE US. My purchase, closing, rehab, etc. should come out to 125k and I'm going to pay cash for everything.

Units are all 2/1's and conservatively will rent at $525 per door in a strong rental area. I also calculate (conservatively) that the building should pretty easily appraise between 225k and 250k. What I would like to do is refi after about a year or so and pull 130k out which represents an LTV of 52-57% based on my appraisal figures. I'm using a 42% expense ratio (should be lower due to the renovations) which gives me a DSCR of over 2 assuming a 15 yr note at 7%. Is this something that can be done, and more importantly, someone would be willing to do?

It's been a while since I've dealt with a bank, so I thought I'd start here first. If anyone can, please provide details, or shoot me a PM. Thanks.