If a MFR produces 10k of operating income and is valued at a 10% CAP rate, the value is $100k.Assuming the CAP rate holds relatively constant, the value won't increase until the cash flow increases. 

However, NY state law limits the increase in assessed value is capped at 6% in a year or 20% in five years. 

Stephanie That's right Stephanie, the borrowers can qualify all day long but if the property doesnt meet the SS rule then they are going to have to use a 5/1 ARM, bring more down payment down, buy down their rate, or increase the rents prior to the appraisal (great strategy but hard to implement) in order to get those rents to be equal or > the monthly PITI.

Scenario A (typical) - $500k duplex-$125k down-$375k mortgage at 4.6%Scenario B (modular financing) - $500k duplex-$125k down-$260k mortgage at 4.6%-$75k HELOC on primary residence-$40k loan against 401(k) (technically this would be $165k down, but you get the point)In scenario A, paying off the mortgage quickly makes zero improvement on cashflow until you pay it off completely, or refinance, and there's no point in that if your rate is locked in lower than current(or future) market rates.Scenario B could involve higher interest rates on the HELOC and the 401k loan, but you have multiple, simple, easy options for increasing your cashflow, and then you don't end up playing as much in the overpriced, volatile stock market.

I knew I wasn't leaving China anytime soon, but seeing the US market continue to increase, my sister and I decided to go for it...stop talking and take action.6 months later, i'm happy to say we are 1 week away from closing on not one, but TWO triplex investment properties. 

My original purchase price was $530k and my current loan amount is $100k.I am looking to do a cash out refinance and increase my loan amount to $152k.

Does the building need major capex in the next 5 years, if so you should increase your capex.

How are you going to pay for the rehab costs and generally there are always unforseen problems that will increase your cost basis.I've written a few lease options and the only one that actually closed in the one year the house I sold appreciated about $100k which all went to the buyer.

Shoot me the address in a PM and I'll run the comps on it.The good news is that Plymouth County as a whole has seen an 11.1% increase in prices over the last year. 

I live in a fairly expensive area and my all in budget on a month to month basis is around 2000 a month.The quickest way to increase your savings is to increase your pay and decrease your spending.