Need advice on a STR BRRRR

[John Carbone]

Bought a commercial property with a 4-plex on it last year for 175k and added around 200k to it (this included furnishings as well), so I’m all in for let’s call it 400k. My mortgage on it is 135k at 4.5 percent, I just got septic approval to add 3-4 more units on the commercial property. 

I'm doing STR on these 4 units since august and the returns are going well. I'm averaging revenue of 8-9k a month with expenses running $2500 (includes utilities/cleaning crew), and also the mortgage and insurance which is around $900 a month of that $2500. It's going to cost me another 400k to add the additional units on the property.

this is my first time doing this so I’m not sure how to best execute this strategy. I’ve heard that since it’s a 4-plex it’s still considered residential and appraisal will be done on residential and not as a business. There aren’t any comps for a 4 plex in my area, so not sure how it will appraise. I’m keeping this long term for cash flow and not really concerned with appraisal other than how much I could pull out if needed. Am I better off waiting until I add the other units to refinance? If I get 8 units on the property assuming I replicate revenue and expenses again I’ll be at 17k revenue on 5k expenses, what kind of equity would I have to pull out and who would give a refi on this at what likely value, ballpark? I’d really like to try to pull out the equity right now to finance the 4 more units and then wait a year with revenue on all 8 and do another refi…..what’s the best strategy to execute on this?