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Updated over 1 year ago,
Need additional Funds to Complete Multifamily Rehab
So I purchased a deal off market on a 20-unit multi-family property.
Rents were $500-$600/unit whereas I rent them out Mid-Term for around $2,000/unit (market long term $900)
I only had the funds to close + turn/furnish 5 out of the 20 units (plus do lots of external repairs). I turned and furnished 5 units and got them rented at $2,000-$2,300, plus did most of the external building repairs (roofs, gutters, landscaping, ect)
Now I have 5 units at $2,000+ and 15 units at $550-$600. It's pretty frustrating trying to use cashflow to fix/furnish the remaining units.
I know I bit off more than I can chew but the deal was too good to pass up.
I've considered raising the rents on existing tenants but I'm concerned they leave and now I have a vacant unit that needs turns and furnishing without the funds to turn it.
How can I get the funds to finish stabilizing the property? Is this something a hard money lender would lend on? If so would I have to refi to pay back when the balloon payment is due?
I'd prefer not to but can I bring on additional investors to complete the renovation? But at what valuation? I've already done some stabilizing so the property is already worth more.
Interest rates are too high to refi one of my other properties that have equity.
For context, I purchased the property at $1.2m, total renovation costs are $200k (of which I spent $50k already) stabilized value is about $2m.
The property is currently cash-flowing decently but I'm saving all the cash-flow to turn the other units.
Thoughts?