Strategies to purchase 8 units in Long Beach, CA

[Lindsey Iskierka]

Hi fellow BP members!  

My name is Lindsey and I'm a Realtor and investor in Long Beach, CA.  My husband and I are looking for our next rental property and have a goal to purchase another fourplex in the Belmont Shore neighborhood of Long Beach, CA.  Rental demand is high here due to the proximity to the beach (just two blocks from the ocean), large university close by, the shopping and dining within walking distance, and the history and charm of the area.  Home values are high and rent rates are even higher.  

There are two fourplexes that just hit the market today; both priced at $1.3 million.  They are two buildings side by side and are mirror images of one another.  They're both for sale individually, but seller would prefer for both properties to go to the same buyer.  Each building brings in about $8,000 of rental income, so both  buildings would be roughly $16,000.  All units are currently rented with month to month leases and there is no deferred maintenance on the property.  Purchasing just one of these fourplexes at $1.3 million would be a great deal and it's in the price range that we are looking for.  However, purchasing BOTH and owning 8 units in Belmont Shore for $2.6 million would be amazing.  

My question is for any strategies that investors in more expensive markets like ours have to obtain financing.  We're open to partnering and raising capital as well.  Seller financing won't be entertained because these are both probate sales.  So we're wondering; commercial loan? Portfolio type loan? partnering? Line of credit? What would be potential strategies to obtain financing and nearly triple our number of units from 3 to 11!  

Thank you so much in advance and I look forward to learning from you. 

Blessings, 

Lindsey Iskierka