How do I fund this deal?

[Ian Hess]

Hey BP!!   I have been a real estate investor for a little over a year now when i purchased a four plex. It has gone pretty well and I am now ready to move on and purchase some more units. I just found someone selling three 4-unit buildings (12 units total). He is asking 350k for each building and it is buy all three or none. Just from questions asked to him briefly, 2/3rds of them are updated and the others are not. It also seems like the management is poor and the rents for location are pretty low. I think there is really good room for increasing my equity and cash flow from the get go.

My real question comes down to how to fund this?  I know a lot of people are 100% financing this sort of thing but how do you do this.

Do I do 1 commercial loan, 1 personal loan, or three personal loans, or something else?

How do you overcome your fear of taking out a million dollar loan?

How do you determine whether this is a good deal or not? Cap rate or cash flow or both? Or neither?

I can provide better numbers tomorrow when he sends over the financials.