Five unit multi family purchase with an SBA loan

[Michael Evans]

I'm making an offer on a five unit property in Santa Rosa, CA. There is a major housing shortage in the area due to the wild fires of last October. The property was built in the 1920's so it needs a lot of rehab. It has four 1 bedroom apartments and an office that was a converted house. I'm a contractor so I intend to occupy the office space unit and one of the apartments, and then rebab the apartments one by one. There are existing tenants all paying way below market rents. I have to move the tenants out to do the rehab. My agent who is also the existing property manager wants to submit the offer with a proof of funds letter showing 20% down payment which was required by the lender. I want the seller, who are the heirs of an estate, to carry a 10% second for three years and put down 10% with an SBA loan.

Any thought on this deal? Thanks