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You need to run the numbers on this one. Compare both good faith estimates. You have to look at the interst rate as well as what junk fees the title company will be charging you to close. ALSO you say you can refi for 75 % of the APPRAISED value. In this market a property is worth what someone will pay for it, not necessarily what some appraiser or the taxing authority says it is. You could be getting into some super hot water if you proceed with this plan. If you have a realtor or other real estate professional that you trust you may want to get some advice.

Just a thought...how financially secure are you to be servicing the debt on two properties? I am assuming that you will be renting 2 or 3 units in the triplex but as a landlord you will need to have cash reserves when the tennants damage the property. Are you looking to purchase other rental property as well?

It is a buyers market now but you might want to slow down a bit, it seems as though you are moving too fast....as real estate values have not hit bottom yet.

The answer above that points out that you may be moving too fast is sound advice!

The no income, stated income loans have gone the way of the Dodo Bird. If you feel secure in your [Large] cash cushion, and you want to go forward check with a reputable Real Estate Brokers and Real Estate Appraisers as to property value and trends in the area[s] of interest. Look into purchase of a duplex Before you are out of a job. Duplexes are near the prices of single family homes in most markets and have the benefit of easy conversion to pure income when ready.

Even Warren Buffett does not see the bottom yet.

Good Luck

Muntu1