Cash out Refi - Multifamily purchase, rehab to Condo Conversion

[Mike Stuchins]

Hi,

I'm looking to purchase more buy and hold properties, but I'm looking to protect my 20% down payment. I've found a distressed 2 family in Jamaica Plain which I could purchase for $440k and rehab for an additional $160k. I'll be into the property for $600k and the ARV is $750k I am basing the ARV off of 2 condos in the area, rather than a rehabbed multi which there just doesn't seem to be comps for. Does anyone know how I navigate through this because the numbers work here, it's an 8.5% cap, 15%+ IRR and Cash on Cash return and 1.5 DSCR but I know I will not get the appraisal where I need it unless I convert to condos….the bank I work with says I can't do it, but there has to be away around it. Any advice?