Mark B in Albuquerque

[Mark B]

Hi everyone,

I'm new to the site (this is my second post). I figured I'd tell you all what I am up to and I would be interested in any help or feedback.

I'm looking to purchase my second RE asset. I own my office building that I bought 2.5 years ago. I bought it with seller financing, then I rehabbed it and split it into 3 suites. All suites are rented with good leases and it is now a cash producer.

I've been looking at getting another property, but I have become interested in multi-family this time. I had always shied away from these, because of the management issue. I have decided to hire a PM for this investment.

I'm looking at small properties, 4-plex to 6 or 7 units because I can handle the 25% down on the loan. I am considering refinancing my office building loan, getting a lower interest rate, and cashing out about 40k which will go toward the apartment downpayment.

Does this sound like a reasonable strategy? Of course, no one knows where the bottom of the market is, but the deal I'm looking at appears to be a good one. It's a short sale with a 8.6% cap rate. Do you have any thoughts or suggestions?

Thanks,
Mark