How Does My Future First Deal Look? (+Refi question)

[Cameron Parsa]

Hey All,

Please let me know if I'm missing anything here.

Purchase price: $400k, Conventional loan 25% down at 3.25% interest or $100k down monthly. $1,305.65 monthly payment.

Four 2bed 1 bath units currently rented at ~$750/month, researching rents supports charging $1,000 month rents.

Total Annual expenses: $3,920 Tax (actual), $1,000 (insurance), $1200 water (actual), $800 trash (actual), Capex/reserves $2,400 or $9,360 annual expenses. $9,360+ $15,667 = $25,027.

Gross Rent- Gross annual expenses ($36,000-$25,027= $10,972)

CoC= $10,972/$100,000= 10.97% on current rents or 22.97% at market

My goal is to get the rents to market. How would I go about refinancing the deal after that happens so that I can continue purchasing property around this area?

i.e. would it get appraised with increased rents at a higher value say $475k and then I can pull out $75K? I'm really confused about refinancing to lever up and buy more properties, any advice or information would be really appreciated.

Thanks!