Deal Analysis Advice Needed!

[William D.]

Hi friends - I'm new to real estate investing, but eager to learn more! I'm looking to buy a 4 unit multi-family in an area with good appreciation. Purchase price would be $1.45mm. I'm considering using a FHA loan (I earn roughly $300k/yr. Only debt I have/will have is a SFH -- investment property that we will be cash flowing roughly $300/mo on --- I'm closing on now with a friend for $200k ), occupy one of the units (for at least 1 year), and rent out the other 3 units. With 3.5% down, I'm looking at $50,750 out of pocket (I have about $100k allocated for real estate investing). I also have a connection that I can leverage for a $200k loan (4%, interest only payments) to rehab the property. I believe the ARV would be roughly $2mm. Alternatively, I can use a hard money loan to finance house and reno (HML likely to be at 11%, but can save using my connection for a later deal). Expected rent for 2 of the units will be $2750/mo, the 3rd unit will be $1800/mo.

Assuming a 75% LTV, would you do this deal? Which option would you choose and why? Does a cash-out refi make sense? After occupying the house for 1 year, the plan would be to buy myself a primary home and rent out the 4th unit in the quadplex for $2750. If you can walk me through how you ran your analysis, that would be helpful for me to confirm whether my analysis is correct.