Turnkey Multi-Family Under Contract Need a Lender

[Ryan Wattenschaidt]

We recently got an 10 unit multifamily with a commercial space under contract in York, PA. Our usual lender has dropped the ball and changed the terms on us from what we have gotten from them on the previous three deals we have completed with them this year. We are in need of a new lender to keep this deal alive. Details below:

• Contracted Purchase Price $275,000
• Seller agreed to finance 20% down over 5 years and contribute $2k towards closing costs
• Building needs no works as the current owner has fully remodeled each unit including new roofs
• All units currently rented, approved for section 8 (if needed), and is current on all licenses/city inspections
• 20 separate parking spaces that can be rented each month for additional income (currently bringing $150 per month)
• Coin-op laundry on site bringing in approx $175 per month
• See below for property evaluation:
• • Scheduled Gross Income           $92,880.00
  • Less 5% Vacancy Rate              ($4,644.00)
  • Gross Operating Income            $88,236.00
  • Less Operating Expenses
  • Taxes              ($15,179.00)
  • Insurance        ($2,645.00)
  • Water              ($2,400.00)
  • Sewer/Trash   ($6,000.00)
  • Mngmnt (7%)  ($6,176.52)---plan on self managing but need to allow for it
  • Maintenance   ($4,411.80)
  • Total Operating Expense           ($37,022.32)
  • NOI                                             $51,213.68
  • Cap Rate                                    18.6%

Our lender does not want to allow us to use the full 20% from the seller.  Instead they want to use 10% from the seller and have us contribute the other 10%.   This is a sticking point for us the seller is allowing us an opportunity with virtually no cash out other than closing costs.  We want to take advantage of that.

Any lenders out there interested in a solid deal like this?  I have schedule E's, copies of leases, and building inspections have been performed.   PM me for more information.

Thanks

Ryan