Refinancing multifamily unit

[Michael Darten]

Hello BP family!! I have a MF unit that i am able to purchase in my local area. The numbers look good for coC , I just wanted a few opinions on refinancing . Using round numbers for example I will buy the property out right cash . It’s worth 1.5M. When I refinance, the LTV is 70% , can I cash out on that 700K remainder and invest that into another property ? Basically I want to se if I can do some kind of snowball effect if you will. I’m in the Las Vegas NB market.

[Bill B.]

The good news is 70% of $1.5 million is a million you’ll have left to reinvest. Glad you were able to find a good deal on MF here. Maybe arrange your financing ahead of time for a second deal and put 30% down on another identical deal. you’ll still have half a million left for reserves or a third I dentical deal if you have other reserves.