Unique Multi-Family Property

[Alexander Zurn]

Hello - I recently have gone under contract with a unique multi family property in Bristol, RI.

It is 3 units. Unit 1 = 3 bed 1 bath ; Unit 2 = 2 bed 1 bath ; Unit 3 = 1 bed 1 bath

Units 1 & 2 are standard MF Up/Down (Unit 2/Unit 1) set up while Unit 3 is a standalone unit with 911 total sq ft of which 448 is livable sq ft.

Few questions:

1. I am putting rents per bedroom in Bristol, RI between $400-$500 based on comps. (1) Can anyone confirm or deny this and either way shed a little more light?

2. Financing this will come down to two things (in my opinion): the self sufficiency calc (3-4 unit FHA requirement - property must be self-sustaining) and finding comps to evaluate it for appraisal. (2)Does anyone know of a property similar to the one I have described? Or how else is could be evaluated?

• The self sufficiency calc will use market rents as the current rents are very low due to tenants being in for a long time. (formula = (Market Rents per appraiser * 85%) > (Principle + Interest + Taxes + Insurance + PMI)
• An appraisal will need comp's similar to a property like this, which I believe will be tough to find and am concerned about not being able to get a loan because of it. (3) Are there ways around this?

Note: I have an inspection tomorrow at 2pm and would hate to spend the money if I can't get the loan due to no comps.

Let me know your thoughts!

Tags: Rhode Island, appraiser, FHA, Underwriting, Boston