[Calc Review] Help me analyze this BRRR deal

[Michael Chilton]

Hi, I'm looking for help on a seller financed deal for a four unit property in Iowa. I want to do a refi with a bank at a lower rate after I re-meter the property so that tenants are responsible for their own utilities. What I'm wondering is 1) is their a seasoning period so the bank sees a stabilization and 2) can I refi a four unit based on cap rate? I have spoken with a local bank about doing a refi for a SFR. They didn't need a seasoning period, and would refi at 80% LTV. Utilities are currently averaging 450/month for the whole property, so the only way I can see this deal making sense with low money down is if the tenants pay utilities. Rents are below market rate, so it could handle the increased cost, though that might mean turning over all four units. For context, there are two 1BRs and two studios. Rents haven't been raised on two of the units in over 10 years. Property is in very good condition and I could purchase at tax assessed value. The current owner is focused on foreclosures that he fixes and sells on contract. He doesn't like dealing with tenants, and has told me about all the issues with the current tenants. They're certainly manageable.

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