So from what I read, I should be using either the fair market value at time of conversion or the cost of purchase plus addition/improvements, whichever is lower.

I'm currently looking for ways to improve security at my 14 unit in Phoenix.

You can slowly improve the cash-flow over time.

It would be an awesome improvement if those could somehow be excluded!

Let your imagination run as to what this could pay for; repairs, capital improvements, pre-paids, etc., but also know that any sort of rebate requested must fully disclosed, appear on closing disclosures, be approved by the listing agent, their employing broker, and most of all, by your lender. 

Many new investors get drawn to real estate because they want to improve their financial picture. 

If closing for the cash-out refi is completed at 6 months or greater than the date you purchased the property, it would be eligible for value to be determined with a new appraisal, which of course is beneficial if you have done any work to it to improve the value. 

Max leverage would be 80%, with rates improving at lower LTV.Banks and credit unions are still offering strong rates on stabilized multifamily in the high-3's / low 4's, 75%+, 25-30am, burnoff or non-recourse, but may have less strict requirements than Agency

I personally have done live in flips where you buy a decent house and improve the value.

Hi @Mike Mefferd, I think that it is wise to consider all of the different options to improve NOI whilst also gaining a marketing advantage of being environmentally friendly.