These factors, which should continue to apply to the separate entity test under the check-the-box regulations, include—the sharing of profit from the business;the sharing of losses from the business;ownership of a capital interest or performance of substantial services;participation in management; andrepresentation to third parties as a partnership (including the filing of partnership returns, the existence of a partnership agreement).

Other times a cash out refinance will not be suitable is if you don't want to take on additional debt or the new payment will take you cash flow negative.It seems you have a goal of how you plan to utilize the proceeds of the refinance, so that is a good reason to do the refinance, but you will also want to look at all the other factors to make you final decision.Best of luck!

But have to consider some factors.

@Trent Smith PLEASE factor 3-5%.

One factor you did not mention is your income.

A primary driver is uniformity of community, the next in most cases is connected with our development funding and approval at a regulatory level. next is market factors, for example a certain area that HOA's are the norm or the expected for a certain price point.

My friend/advisor with more experience says I am being a cheap knucklehead and that the $20k is not relative when you factor the forced appreciation and income/valuation of the improved asset(proforma), but, I think it is math and $20k is always relative and I have my criteria(4.5cap) and was very transparent about it from when I first submitted the original accepted offer, and my DD uncovered several hidden deficiencies that make the credit necessary to maintain my original underwriting numbers and even though I understand my friends rationale, I don't want to give in any more slack(adjusted to 4.4cap), than I already have...What do you experienced multi family acquisition people think?

Those numbers, though, depend on many factors that will be specific to your local market; you won't be able to be given a simple yes or no response from anybody here.

I would say if you are stuck on 1 % and nothing less you will most likely be sitting a while, there are lots of other factors that make it worth buying real estate in Clarksville and hitting 1% could just be a few years down the road off of increasing rent rates. 

@Ben Nelson mentioned the sage wisdom of correctly setting team members, that is a whole lot harder today because things are at such a level with so many factors at play and fact is the vast majority simply do not have the resource pool to have a truly well equipped internal team or knowledge base, it is a very small number of us who do.