It'll be like 2009 refi bumped rate no closing costs, 2011 refi bumped rate no closing costs , and BAM Jan 2013 spending a crap on points final refi 2.5% 30yf never selling that house never refinancing it again (Jan 2013 b/c you can only see the true true floor a month or two in hindsight).

@Moises Villasenor so how did you arrive at your capex number.My capex budget includes but not limited to: roof 25 year life span, floors 10  year life span, appliances and hot water heater 12 year life span, hvac 20 year life span, bath and kitchen 20 year life span.

The building in question has (4) one bedroom apartments, (2) on each floor.

In concrete terms, if you have a property which is fully paid off and appraises for $100k, a lender may only do a cash out refi for 75% of that ($75k).

We have 10 of them in total on 2 floors and they are super heavy.

Replaced all windows and exterior doors, 2 interior doors, painted complete interior and many minor repairs, Drum sanded all wood floors( hardwood throughout) What made you interested in investing in this type of deal?

So I want to break down the deal below, and get a few of your suggestions on what our next move should be AFTER the rehab.Found the deal at an auctionIt is a single family home, 2935 sq ft, 4 bd, 3 bth in and absolutely FANTASTIC neighborhoodPaid $150,000 for the housePaid about $6500 to closeAppraisal came back at $187,500 and it hasn't been updated since the 90s as far as inside appearanceNo major flaws, mostly cleanup, cosmetics and updatingFactored in $30,000 for the repair costs (roof, flooring, paint, kitchen/bathroom updates)We put $30,000 down for down payment$120,000 will be financed at 4.5% PITI is $1030 (after remodel PITI will go down as we are switching to a landlord policy)After remodel will rent between $1500-$1700, maybe more but doing a little digging on corporate rentalsWorst case will cashflow right around $300 per month ARV will be in the range of $250,000 on the low end.  

we did some cosmetic updates in the kitchen, new stainless steel appliances, fresh paint and flooring throughout.

I have been told by lenders that this is not a concrete "law."

however if the SFH is all above grade it will be how well its converted and units are divided.. personal on a converted duplex I would prefer a side by side vs upper lower split because having a tenant above you with potentially lousy structure floors is super annoying for the lower tenants.. being split with a party wall is much better and also the fact if there are separate utilities..