Getting cold feet with 1st deal -Help

[Tony T]

Having been looking at apartment for a while and now found a bank owned vacant 52 unit C class apartment in a relatively OK neighbourhood in Jacksonville Florida.

Appraised value = $1.7mil as dated Oct 2008
Estimate Repair cost = $200K
Avg market rent ~ $630
Purchased price = $1.2 mil with 120 days no payment which hopefully is enough time to fix up the unit for rental.

Since the building is vacant, I think I can only go for a bridge loan.
1. Do anyone know any lender would lend more than the purchase price (for rehab) with no down payment from newbie investor?

2. Does the deal make sense at all in Jacksonville market?

Please help.

tony

[Will Barnard]

I second Rich's comments. Furthermore, this is a deal for a cash buyer and not a leveraged one. It takes time to stabalize a building from 0% occupancy and it will be next to impossible to get financing without the income there to support the debt.

Look elsewhere or find a cash buyer to partner with or flip to. Also, at over $23,000 per door and no tenants currently, you should be able to do much better, especially sinc ethis also needs another $200k in repairs which adds over $3k per door in costs. I would pass at that price.