How to estimate refinance on multi unit?

4 Replies

Hi Bigger Pockets People! 

I am renovating a duplex and am currently working through how much to invest (how nice to make it) in it as either a rental property or an Air BnB in Colorado Springs. 

Do any of you have any tips or information on how to best calculate a refinance of a multi unit? I am in the process of running the numbers to maximize profit while pulling out the most possible funds for the next deal. 

Thank you!

Kate 

@Kate Hensley Hi Kate, my best words of advice would be don’t overspend. Airbnb is another animal I’m not entirely aware of but I imagine you’d want nicer finishes because you will make nicer returns. The site below is a good reference on renovations verus value. http://www.remodeling.hw.net/cost-vs-value/2018/mountain/

Are you thinking of BRRRR? If so there are a lot of moving parts and I'm not sure how banks look at Airbnb figures compared to long term rent. I'm assuming not as favorable as they are typically a number of years behind real world activity and they prefer tried and true methods. Personally I'd love to BRRRR while doing Airbnb and think it makes a lot of sense! They say to make sure not to overspend when renovating for Airbnb and any rental for that matter. I would suggest more standard finishes for long term rental and maybe finishes that are a little more fun if doing Airbnb to draw a visitor's attention.