Hello all, Looking for some advise. 2 years ago I was able to purchase a vacant 12 unit property all 2 bed/1 bath in need of total rehab. Country setting 3 quad units on 1.2 acers. Nice location in North central Ohio. Since purchase we have updated all exteriors (New metal Roofs, windows, doors, siding, porches decks) Most people think there new construction. Interiors were completly gutted, due to two prior renovations where they were completed on the cheap and dated. Again all new everything (studs,wiring, plumbing, drywall) So far we have completed 8 of the 12 units, these 8 were leased thru a local realtor @ $500. mo on a 1 year lease. We have a waiting list for the final 4 units. The unit have turned out better than expected with 9’ cielings, original hard wood floors, ect. I should mention that I have been investing/rehabing for 20+ years, so tackling this project was a no brianer and all work has been completed to code, and with the thought of a long term investment.
So here’s my deal? To date we have total investment of $240,000. (cash, equity line, ect) No leins on this property. Credit scores of 775+ both parties. but where tapped. Most of my history has been in the SFH market. Realtors tell me ARV is $625,000+ in todays market. We need about $40,000 to finish. I’ve talked to the banks I’ve done business with in the past ( the ones that use to write me a checks with a phone call! ) and they are not interested. Some due to it not being 100% and others just plain say they don’t want the commercial business now. I’m sure because it’s a cash out doesn’t help either. Here’s my wish list $200,000. - $250,000. new mortgage. This gives me my cash back, enought to finish and plenty of skin left in the game. The last 4 should be ready by May 1. So this amount also leaves me a great cash flow. What do you guys suggest? Do I just keep plugging along and let the cash flow fund the completion over the next year? Not my first choice! Do You know of any lenders doing Commercial loans that will work with me to complete this project? or do I bite the bullet and go HML route and re-fi once completed? Or is there another option I’m missing?? Sorry for the long post, but I wanted to give as many details as possible. Thanks in advance for any help!