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Updated 9 days ago, 12/13/2024

User Stats

3
Posts
1
Votes
Joseph Pelensky
  • Investor
  • Philadelphia, PA
1
Votes |
3
Posts

$100K+ in Equity, no down payment, how do i buy this deal?

Joseph Pelensky
  • Investor
  • Philadelphia, PA
Posted

I currently own a duplex in Philadelphia that is worth $285k conservatively. I owe roughly $75K.

I found an off-market, 6 unit deal that is owned by a customer of mine i'm interested in purchasing. She's asking $700K.

My question is how do i start the process of obtaining this property without having to sell and 1031 exchange my current duplex.

I have not much in savings, and no where near 20-25% for a down payment for the new property.

My current Duplex is fully rented and cash flowing at around a 7.5% cap. This new property is pumping out around a 10.5-11% cap currently.

My credit score is not great as it sits, hovering around a 650 but slowly increasing as i'm paying off debt. I'm self employed and not showing much income on my taxes.

Is there any way to use the equity in my current property to put towards the new property, or am i basically stuck selling the duplex and rolling it into the larger 6 unit rental?

If any further info is needed let me know and i can post it.

Appreciate any info or guidance in advance.

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