If the ARV is actually higher than the 1% rule then it is not bad to have that extra equity, but the more that is borrowed against the harder it could be if the market softens. 

 These loans usually require 20% to 25% down but calculated off the purchase price plus rehab dollars needed.

Understand the fees involved and calculate the total cost for an entire year of management so you can compare the different managers.

And another question - In BP‘s BRRRR calculator, how do you account for pulling your money out at the refinance stage (at 9-12 months after purchase) and as well raising rents through the years of ownership?

(Well minus closing cost)View report*This link comes directly from our calculators, based on information input by the member who posted.

I don't see why they would cancel the deal if you're at the finish line and just need an extra week.A good portion of a Mortgage Broker's job is expediting this process and keeping everyone in check. 

(Well minus closing cost)View report*This link comes directly from our calculators, based on information input by the member who posted.

You're probably not going to end up with any cashflow, but if all the bills can be paid and you can live in one unit for under $500/month, you've likely shaved at least $1,000 off your monthly payment by renting out the other units, and can use that $1,000 in savings every month to save for the next property or make improvements to the current property and increase it's value and get more rents.The real problem with this projection is that no one has a real estate crystal ball, and far too much can happen with the economy and politics in the next 2-3 years to be able to accurately tell you what the experience will be like in Phoenix.A real easy way to experiment with this would be to look up 2-4 unit multifamily properties on Realtor.com or MLS, see what the units are renting for, deduct one of the unit's rents for you to live in, and then use a simple loan calculator to see what your monthly PITI would be vs. the gross rents.

I don't think I would tell my job what I am using it for just because some companies have policies that don't allow employees to work second jobs or run businesses.How much extra money would you be out if you took the commercial loan and then refi'ed once its liveable?

Understand the fees involved and calculate the total cost for an entire year of management so you can compare the different managers.