Need help on first deal - Posted by Tom (Ma)

Posted by Tom (Ma) on August 13, 1999 at 13:07:55:


Any feedback would be appreciated.

I’m trying to purchase 8 multi-family homes with 50 units. They are being sold as a package. Two of the homes are zoned commercial, and one of the commercial homes is mixed use.

I expect the appraisal to be around $1,560,000. The owner is willing to accept $1,300,000. The owner is also willing to take a small second, 5%. I can probably come up with 5% via credit cards, loan on 401K, and line of credit.

The properties have all been renovated in the last 10 years. Income is about $260,000, expenses are running around $65,000. Rents are below market as increases have only occured when the units turn over. I plan on managing the properties myself.

Any thoughts on where to go for financing? I thought about brining in investors but don’t really know anyone with that sort of cash. Banks typically want 10% down. Help.