BRRRR advice for a potential deal Los Angeles

[Andrew Stenvall]

Hi, 

I am looking at a deal where the refinance for a BRRRR on a multi family would be essentially $60,000 cash out on a 80% LTV but it still has negative cash flow. As a total noobie here (apologies ahead of time!), is this something that would be offset if you just hold the property after a 5 year estimated proforma with a 3% appreciation/rent increase? It seems to break even on my calculator at that point, but seems risky to have to cover the refinanced mortgage.

I'm mainly trying to just figure out if the year 1-5 loss of around $38,000 is still worth it in the long run with the sale price covering that loss plus about $250,000. Any help or guidance would be appreciated!!!