Why is this a good stretegy other than having access to the $?

So higher interest for sure but money still available, if you are not over leveraged and have access to capital you can keep the wolf from the door; anyway that's how I see it. 

If you're getting recourse debt from a local commercial lender they often will allow you to roll rehab into the loan up to a certain % of appraised value.  75% LTC is fairly common for that size asset, assuming debt coverage is adequate.   

If that is accessible, it adds value (egress).

@Ken Lagana have you ever considered commercial property or alternative use land to diversify the market effects on your portfolio of holdings?

@Mark Ainley the first commercial property we bought the seller informed me there was a tenant who would be problematic.

Do you have funds that are easily accessible in case you stumble on an offer that you can't turn down?

Investment Info:Large multi-family (5+ units) commercial investment investment.

We offer both residential and commercial real estate services together as a team. 

This will give you unlimited access to the calculators.