I have found an 8 unit apartment building, asking $720k. Gross is 55.5k, net is 46k. This looks like it could be a good deal for the area. But here’s what I’m wondering:
Could I even buy this, and would it be wise(I know the 2nd ? is mostly subjective)? This would be an owner-occupied property.
My FICO is 720, should be going up soon. I have no verifiable income, due to a divorce in the 11th hour of a business start-up after I quit my job to start it. I have around $100k cash and a car payment. The credit card balances are gone next month.
Could I even get a no-doc loan for an amount approaching this? Would the interest bury me?
I know little about “creative” financing and would like to buy it in the most advantageous and prudent, but straightforward way(of course). I would need to rely on the income from this for a while, and also would want to have reserves for the unforseen and improvements so I could increase the rents as necessary. Would there be any way to add improvement funds into the loan?
Also, what would be a good way to research cap rates for the area for comparison? I’m sure the listing agent would tell me anything to sell it, and I don’t know any commercial realtors in this city.
I am in the embryonic stages of looking at this property, so thought I’d see if this was even possible before I proceed.
Thanks for any advice!!