Partner vs. Hard Money (Deal analysis - Portland - Oregon)

[Ashley Watkins]

Hello BP Community,

I am analyzing a deal right now that is something I think I would like to go through with.  This will be my first purchase as an investment. I have only purchased my primary residence, and this is a new learning experience for me.

My question is - what are some of the real life pros and cons of using a Hard Money Lender over an Equity Partner? (I do not personally have the cash for this deal, but would be a fool to pass it up.)  

Some info about the deal:

Units: 5

Asking $779,900

County has it valued at $830,000

Rough Projected Rehab/Deferred Maint.: $30k. (May be able to do over time)

Currently renting below market for total income of $4,850 (month to month)

Based on my knowledge of the area, and running comps, "Market" rate would rent these for a total of: $7,800

I am running my income projection at about 80% of that: $6,350 (to be conservative) once running and maintenance is cleared.

Expenses will depend on if I choose an equity partner or do hard money and refinance with a commercial loan.  

Projected operating expenses will be $2,108 (excluding financing costs) monthly.  Depending on hard money vs equity partner and commercial loan, the financing expenses will vary, but currently I have it projected at $3,200 a month for a commercial loan right off the bat.

Any constructive Input would be greatly appreciated!

Thank you, BP Community!

Ashley Watkins.