Realtor · Mesa, AZ · Member since 2018 · 29 posts · 2 votes
I have an opportunity to buy a 1957 duplex in a C+ neighborhood with both units currently filled. It is one street over from a historic, A neighborhood. Here is a snapshot:
I would like to BRRR.
Leases are up Feb. & March/2019.
Rents are currently $100-$150/unit under, as they sit. Once rehabbed, rents can improve $300-$400/month/unit.
Owner currently pays water/sewer/trash. Water needs to be metered to tenants.
Both units need repairs and remodel.
Absentee owners.
Asking price reduced $15k in June.
Here is my question:
In order to be a cash buyer, what is the best route to take if I, personally, don't have the cash reserves? I'm working on building my network but at this point don't have the knowledge of any private money lenders. Hard money seems to be the next answer.
I'm open to any and all suggestions. Thank you in advance for your input.
Realtor · Mesa, AZ · Member since 2018 · 29 posts · 2 votes
8y
Original asking price was $185k now reduced to $170k in June.
I am not able to estimate the rehab cost or have an inspection until my offer is accepted because it is tenant occupied. At that time, I have 10 days to see the inside and complete the rehab quote and inspection. I'm guessing rehab will be $15k-$20k.
My concern is carrying a hard money loan for 6 months waiting for the leases to expire. At that time, I can rehab, then refinance. Is there another solution to hard money or conventional? I would like to give a cash offer of $100k-$120k. I don't see that flying unless they are motivated. Cash creates powerful motivation sometimes!