I have found an apartment complex, 4 units, 2 up and 2 down 1250 sqft each with large covered porches and 1 car garage. Built in 2004 with a construction cost of $586,000. The building and grounds are in pristine condition and ready to rent. It is located on the 9th fairway but the golf course was closed down due to leans against it. It is a bank forclosier and is on the market at $275.000. My problem is my income is just below requirements for a conventional loan. After reveiwing records of rents and cost of operation, I have determined that I would have a cash flow of 1,100 per month. I am liquid for $138,000. Does this deal sound like it would be worth approaching a hard cash lender or are there other ways to finance. Thanks for any advise. Jkuykendall
Are you reviewing past maintenance expenses and figuring you’ll have $1100/mo left over after you pay the mortgage, insurance, property taxes, and the expenses you think you’ll have? What is the rent amount for the units (and is that amount based on when the golf course was operational or is it an amount you can currently get)?
If the cash flow is as good as you say, a commercial loan may work for you if you are willing to put up to 30% down.