Buying apartments need advice

[Luke Lawrence]

Hello Everyone, I am looking at purchasing 40 unit apartments for $375,000. They are lower end and renting for 350-400 a month at 50% occupancy. Each unit needs roughly 10k in renovations. The seller assures that if I renovate it that there are section 8 vouchers available to pay monthly 450-500. I would say after renovation I'd be in for 875,000. With 40 units. My biggest hurdle will be financing. I have 25k in cash but that's about it. Any advice for the financing? Also, any other questions that should be asked to the seller? How is it working with section 8? Any advice oils be greatly appreciated. Thanks

[Mike Dymski]

I'd recommend reading books and listening to podcasts on apartment investing.  Your biggest hurdle is not financing, it's education.  Sorry for the tough love.  $25k is not enough capital to purchase a $375k property, especially one that needs $500k of rehab.  There are ways to purchase properties with other people's money but $25k is a drop in the bucket when it comes to loan closing costs, down payments, post-closing liquidity, and $500k in rehab.