Advice on deal in Denver

[Tanya Maslach]

Hi everyone!
We want to get into MF (2-3units to start) doing BRRR... and rent out for Mid term rentals.

We see a house that meets our buy box, and our investment goals are;
- $300 gross profit cash flow per month
- 30% equity + with forced appreciation after rehab
- Refi (if rates come lower!) in 12-18 months and do this again with larger multifamily.



Details below.   My questions are:

a. Would it be unwise to get a HELOC that takes out almost all our equity on our SFH rental to invest in a multfamily (2 unit; 2bed/1 ba per unit).
-- We are estimated ~ $80K in rehab and comps for ARV are $775-825K. (List price is $619K)
-- We are concerned about the monthly costs to support a hard money loan AND do a HELOC.
-- Our current rental can support a higher mortgage payment (with the HELOC), and still have $200+ positive cash flow after the refi.

b. After number crunching, we want to offer terms that work for 20% down + rehab estimation.. that puts the offer at around $525K. Mortgage payment with T/I - $2633.  
-->Rental estimations for area are (conservatively): $2000 lower unit, $2600 upper unit.

What about this doesn't work for you all, given our investment goal and strategy? What numbers am I not considering?

What questions am I not asking?

Thank you!