Two Duplexes Two Tax ID's One Well - Financing Questions

[Kirk Berryman]

Hi All,

I've spent a lot of time lurking - this is my first post.

I'm looking at a 4-unit purchase.  There are two individual lots being sold as one.  One duplex on each lot, BUT there is only one well.  The property is located in Michigan. The purchase price is $265k with gross rents of $3600/month.

I'm running into issues with traditional residential lenders who do not want to underwrite a loan in this type of situation.  So far the only options I've been able to come up with are as follows:

• One residential lender said they could do a standard 30 year fixed at 4.75% with no points 25% down, if there was a "Shared well agreement" publicly recorded and/or on the title.  I would have to convince the seller to do this and it would be irrevocable, so if I ever decided to sell one off it could cause some issues.
• Get a commercial loan but then I need 30% down which is a bit of a stretch for me (I've got about 80k in liquid assets) and the loan would be a series of four 5 year terms and with interest rates set to rise over the next few years, I'd really rather lock in a good rate now and forget about it.

So I'm looking for any advice from anyone who's run into a similar situation, and/or any creative solutions. Any and all help much appreciated!