11 Doors, $270k, Full Rent Roll, $35k/yr income. No idea how to fund?!

[Justin Ellis]

I'm a super beginner, just started looking for my first hard money single family flip when I run into this deal. It's 11 doors with an onsite maintenance man, right next to the University of Arizona in Tucson! Problem is, my credit is shot and I'm broke! The deal seems awesome but I don't think this is a hard money scenario, right? So, is it possible to get this deal funded with some sort of creative financing technique or do I just give up and get back to focusing on finding my flip?!

[Anthony Gayden]

@Justin Ellis 11 units and only $35,000/yr gross income doesn't sound like a very good deal to me. Just for comparison sake, I own a 4 unit about in Tucson that generates $26,400 in annual gross income. I paid $152,000.

By my calculations that would mean that the rent is only $265 a month per unit. The only places I have seen with rent that low are studio apartments or maybe 1 bedrooms in less desirable areas, like South Tucson (which actually is pretty close to the U of A).

Don't forget that an 11 unit will require commercial financing, which means higher interest rates and shorter amortization periods, which simply put means higher payments. 

Also why I don't think you need an on-site maintenance guy with only 11 units.That would seem to be a waste of money in my opinion, and I would just use a traditional property manager unless you wanted to manage yourself.