Commercial Property Redevelopment Financing-Need Input

[Chris Svendsen]

Currently I have one active single family rental and have a second one closing on in a few weeks.  First house is for family, second one is a student rental for college students.  While looking into this property, and listening to all the various podcast, it seems Multifamily is where it is in relation to larger returns.  Problem I have is how to finance a property that is in need of a full rehab to get it rent ready.  

We are looking at an entire row of houses, 5 total, that would be made into student rentals.  Problem is the property is in need of a full rehab, in the area of $500k to get it rent ready.  We do not have that kind of cash available but wanted to see what options are out there from banks.  Seems like the deal is almost two small for what I want to do or maybe I just dont understand how the various programs work.  Ideally, assuming I can secure the property and get it zoned for student housing, we would be able to house 25 students in property paying from $375-450 a month each to reside in units.  If I decide to go with model of covering all utilities then rent would be $550-600 a month per student.  

My question is, how do I get funding for a project like this?  Looking for funding for the rehab of the property.  With ability to bring in at least $93k a year on rents before expenses it seems like this will be a very profitible building over the long term.  For all the commercial experts, how would you recommend I proceed in trying to secure financing this property?  I will be reaching out to bank we deal with for our current properties but wanted any and all ideas you have about how to make this happen.  From what I found there are lots of programs for $1M plus but less than that it appears my options are very limited.  

If my info to vague please let me know what other info you need to make this easier.