All Forum Posts by: Khizer Husain

Hello, hope you are well. I am purchasing multi-family properties at distress prices or rehabbing them. Most banks require you to hold onto these properties for one year until I can get my equity out and limiting it to LTC. I want to refinance immediately after 3-4 months or even after one month of purchase based on appraisal value and cash out ideally over and above my down payment paid as well. What is the best way to go about this? I’m buying $1 million+ Properties ranging from 2-50 units. Here is what I am planning now:

bridge loan to acquire properties - refinance via bank note - after one or two years go to agency loan to get cheapest interest rate. 

thank you

Thank you all! There are deals at 8-10% cap ranges, I am primarily looking at Texas and I have found some but they are lower price ranges at around 500,000$ and Duplex/Triplex/Quadplex. I am looking for 5+ units and minimum $1 million price.

Question: How do appraisals and cap rates work? Do they take into account the last sold properties in the same zip code? please guide me on this. 

I have about 500,000 USD cash to invest. I am looking to start investing in the following type of multi family apartments:

I am looking to buy deals at 1-1.3 million (With Finance with an average of 20-25% down)

Cap rates between 8-10%

I would either aim get deals at distress and refinance immediately with existing cashflow to get my money out and move onto the next property

or I would buy deals where there is rehab required and I can increase rents and then refinance immediately and move onto the next property.

What is your opinion on this? My goal is to build a sustainable rental income and hold onto properties for many years.

In addition, what do banks look for while refinancing? I have been told some banks do CapRate Refinance and some do value of property. How is cap rate evaluated for a multi family property appraisal so I know how much Refi I can get and what the sweet buying spot is for me to get my money out?