First time investors - Potential BRRR/House Hack

[Frank Dixon]

Hi everyone, thank you for taking the time to read and help us out!

My girlfriend and I live in South Florida and are looking to buy a duplex/triplex to house hack. The South Florida market is tough, we've put in 2 different FHA offers but were beat both times to all cash buyers. We found a triplex we're interested in, details below:

• Purchase price: $400k, 10% down conventional loan, owner occupied
• Income: $1700 + $850 = $2,550
• Expenses: $3,312 (also accounting for vacancy 3%, maintenance 5%, CapEx 5%)

• Unit 1: 2/1 fully remodeled: rent is $1700, month to month tenant
• Unit 2: 1/1 remodeled, dated bathroom: we would plan to live in this unit. (CMA: $1100 rents)
• Unit 3: 1/1 needs full rehab: rent is $850, month to month tenant who has been there for 15 years.

So, we’d be paying $762 a month, which is better than our $2,000 a month apartment in downtown Fort Lauderdale. And if we moved out of unit 2 after year 1, we could collect $1,100 a month, cash flowing $338/month

Eventually, when the tenant moves out of unit 3, it would need a full rehab (~$25k), we would get a hard money loan to rehab the property. After the rehab, we’d refinance out to pay off the hard money loan and original conventional loan.

Purchase price: $400k

Rehab: $25k

ARV: $510k

Our questions:

Are we able to get a hard money loan for just the rehab? Would it be worth it to pay closing costs on the original conventional loan + hard money loan?

Would it be possible to refinance out of the hard money loan and conventional loan in to a new mortgage? (75% of $510k is $382,500, use the $382,500 to pay off $25k hard money + $360k remaining balance on conventional loan)

With the refinance, do we have to be renting out all 3 units? Or can we still live in 1 unit while we refinance?