Financing for a 10 unit post rehab ARV 750K?

[Ashley Nelson]

Hoping someone can point me in the right direction.

I have a spanking deal on a gut rehab job where with ~300K in I can buy and reno a 10 unit apartment unit in a B/C class neighborhood. The ARV would be 780K at a 8% cap rate and I'd have a government contract to rent the units out to vetrans. I've been told I can get rehab budget (basically hard money terms) but I'll struggle to get commercial financing given the number of units and valuation. I'd hope to actually only do a 50% LTV to keep this cashflowing solidly but get my money back out. Long term buy and hold strategy for at least the next 5-10 years.

Any thoughts on how to take this on or watchouts besides? Thank you! 

[Brian Cauldwell]

There should be long-term solutions/financing for this property. The $78k value per unit and total value of $780,000 are well over many lenders' minimum requirements. 

One thing to consider is that many lenders like to see 12 months of operating history. For the rehab loan, I would look at options longer than a 12-month loan. A 24-month loan would be preferred so you can build up the last 12 months of cash flow for the property.