Multi Family Strategy

[Khizer Husain]

I have about 500,000 USD cash to invest. I am looking to start investing in the following type of multi family apartments:

I am looking to buy deals at 1-1.3 million (With Finance with an average of 20-25% down)

Cap rates between 8-10%

I would either aim get deals at distress and refinance immediately with existing cashflow to get my money out and move onto the next property

or I would buy deals where there is rehab required and I can increase rents and then refinance immediately and move onto the next property.

What is your opinion on this? My goal is to build a sustainable rental income and hold onto properties for many years.

In addition, what do banks look for while refinancing? I have been told some banks do CapRate Refinance and some do value of property. How is cap rate evaluated for a multi family property appraisal so I know how much Refi I can get and what the sweet buying spot is for me to get my money out?