Cash Our Refinance on my duplex for $60k

[Account Closed]

Hello BP.

I am in the process of Cash Out Refinance my duplex and Pull out around $60k. 

I am trying to use that money to  invest more into multi-Family and would like to use it to it best. do you have any recommendation or advise to the use of the money or type of loan that I should use so I can buy more investment properties.  I don't want to use 20% down payment like I did on my other Duplex because it drain my capital down. Also If I put 20% down, I would only be able to buy one Duplex but I like to buy more than two this year. 

Let me know what you think or what would you do with that Money. 

[Doug McLeod]

If you want 2-4 unit "multi", your best options to avoid big cash outlays for down payments is to find deals at big discounts (where purchase + rehab + financing is <= 70-80% of ARV) and use hard/private money or buy low/no rehab at higher %ARV on great terms (like 90-100% owner financing).

For real multi family (5+ units), you might find a 5 or 6 unit you could get for 200k, but more than likely you'd need to invest passively or be a lead member in a LLC with some other investors pooling money to buy a larger property.

Or go flip some houses to build some additional capital and then buy a bigger complex on your own. 

In any case, only finding good deals will allow you to preserve (or quickly regain/multiply) your cash. Otherwise expect to put money down and wait for it to build back up.