value adding to multifamily

[Max Pfeifer]

What is a good target of rehab/ value add to cash out refi in 1 year. Not necessarily looking for huge profits from the refi more just to get my money back out and into another property.

[Brandon Cormier]

Hey Max, i guess it all depends on the situation.

The property, the amount put down, the strategy. Ultimately we want to pull out every penny but its not always possible or realistic in a year with low down payment loan. If you can get to a point where you can refinance at 80% LTV in a year and drop PMI that alone is a HUGE win. and if it is owner occupied there's other ways to pull equity afterwards like a HELOC up to 85-90% LTV

I recently just finished up a property in MA, purchased for 530k with tenants locked into low rents. Spent the year fixing it up, bumping rents, adding a bedroom and doing 2 unit turnovers. After the 1 year mark it appraised for 740k and i was able to pull out 80% of all the cash i put in with rehab and downpayment. That to me is a home run as im lucky to get any money back at the refi of a house hack in one years time. If you want to chat let me know, would love to help out and give some tips.