Complex Hard Money Question

[Dustin Smith]

Hey all,

I recently came upon an interesting opportunity to purchase an 8000 sq. ft. 20 bed 7 bath retirement home that I plan to turn into 6 apartments.  I figure I can get the property for $210,000 plus closing costs, spend around $95,000 in repairs, new construction, appliances, etc. for a total of around $315,000 and have a property worth $450,000 on a bad day, which I would plan to rent out.  Most hard money lender sites that I've visited are strictly single family fix and flip or at most 4 unit.  The ones that are willing to do bigger buildings or loans over $250,000 aren't playing in my state, at least based on the information on their websites.  Does anybody have any experience with anything like this?  I assume they have to be licensed in a specific state to do business there?  Alternatives?

Also, side question. Being that I would have a $450,000-$500,000 finished property with $315,000 into it (70% ARV) is there any reason that I couldn't just refinance the hard money debt into a conventional commercial mortgage with the 70% LTV and no down payment? Seems to me they get the security they want, I don't have to put the extra cash in. Or am I completely crazy?

Thanks in advance!