You may start to see the odd lender putting terms in the contract that you have to wait at least 6 months to refi… this would be for the one purpose of eliminating the new blend and extend strategy to eliminate the IRD penalty for breaking a mortgage term.

There is an infinite number of ways to do this, but I would recommend blending and extending.

Also are you doing these with your own crew, hiring local contractors, or a blend?

However, like most things in life the best approach tends to be a blend between extremes. 

The average blended analysis of those properties is attached as an image to this post...Here's how the numbers break down:- First, as I said above, cash flow isn't great.

To close this post out, the appraisal came back and the value was a blend between the sales comparison method (specifically focusing on $/unit) and the income capitalization method (via cap rate).

You could have 3% rental increases each year instead of 2% so that your blended return is higher over time and when you sell years later. 

If I combined all the units and gave them a blended grade, I would give the property a solid B.

Hi Account Closed,Rental income is qualifying income just like your $50k/yr from your dayjob is qualifying income.The "4x income" thing is an old rule of thumb, but was never a mortgage underwriting guideline.For up to 10 financed properties, it's a residential mortgage where we blend your dayjob income with all the PITI of all the houses you own (including the one you are buying), along with all the rental income from all the houses (including the one you are buying), along with all your personal debts (car payments etc) to arrive at a monthly DTI number.

I have a relatively decent credit score of 720ish, but no income.Is there such a thing as blending us two together for a cash out refi?