How do you finance low income undervalued Apartment building?

[Sachin Bhat]

I am looking into buying a 37 unit apartment building. I am buying it from a wholesaler and it is priced low because property is in distress. It is 75% occupied right now and the sale price comes to almost $12k per unit. I reached out to so many lenders and some say they don't finance it in that state and some say they don't finance apartments costs less than $50K per unit in sale price. Property is in a C class neighborhood. I did some research and found that it is Not in a "War Zone". Just low income area. It needs about 60K in repairs. My plan was to buy it with hard money with 10% down and use my own funds to rehab and rent out rest of the unit, stabilize it and then do a cash out refi in to a conventional apartment loan. Although I owned/rehabbed SF properties  this will be my first apartment deal (if I can get it done) and I am kind of hesitant to raise money from private investors because they always ask how many apartment deals have you done in the past. Where do I go from here? Should I just drop this deal and move on to the next deal? Only reason I haven't given up on this deal and asking for help from seasoned investors on BP is because I see great potential in this property. Thanks in advance for any inputs. 

[Sachin Bhat]

@Anton Mattli that’s a great advise. Thank you! I will call the property management again and find out the eviction rate. It’s for sure not in a “war zone” because I called the local police department and asked about that neighborhood. They said they get calls for petty theft and as a owner you can prevent that by managing the property right. Possibly putting some security cameras etc. I have the actual rent roll and currently 19 units are rented and brings $9700. When i spoke with the property manager she said it needs new boiler and new wirings. Roof also needs some attention. But it’s a solid building.