Mortgage with construction loan or cash out refi

[Anthony Vander Meer]

Hey all,

I'm purchase a 4 unit. I was all set to pay cash for it and rehab it with an existing HELOC then refi out. My banker presented a mortgage/construction loan in which they'll do an upfront appraisal to calculate the ARV so I don't have to come out of pocket. This is done by local comps, rental comps, and my contractor's quote. Has anyone had experience with this loan product. I like his loan idea but my main concern is it will appraise for less then if I had the building full rehabbed and rented.