Loan options for multifamily rehab

[Nick Coral]

Hello!

I acquired a property in a downtown area in Maine years ago and was naiive to the issues with the note. Long story short: I have cleared the note, and have worked hard to get the building to 11/12 units rented through self financing. ~$35,000 net, no mortgages - I own the property free and clear.

However there is a TON of deferred maintenance and the building is in need of some rehab.

I have approached my local credit union for a commercial refinance loan but I'm almost certain the appraisal would come in too low for something like this.

What lending options might I have here? There are some grants/loans available through the municipality that I'm looking into.

I'm still very much a newbie, so please challenge me with questions. I want to learn!

[Anthony Dooley]

I don't know why they wouldn't give you 75-80% Loan to value or open up a line of credit against the property.  You have 100% equity, so whatever the value is, you can get 80% in a loan. Repair what needs to be repaired before doing upgrades. Caulking cracks and painting is something you can do with your cash flow. Use the loan for the big ticket repairs.