Creative Financing Options for Unique Situation

[Michael King]

Good morning everyone! I’m looking for creative financing options for a unique property. I’ve stumbled across a 4-fam property with a 5th unit on the 3rd floor that is roughed in (down to the studs with roughed plumbing and electrical). My wife and I want to purchase the property, continue to rent the four existing units while the 5th unit is being renovated, and then move into the renovated unit ourselves. We’re estimating that the renovation can be busted out in 3-6 months (tops). The catch is, most financing (including owner-occupied options) only allow for up to 3 units, or require the owner occupant to occupy the property immediately. We don’t want to have to kick a tenant out of one of the existing units and move into it (losing income from that unit) just for the short period of time while the renovation is being done. Additional information: property is zoned for 4-8 units. Classified with the city as currently having 4 units. I am familiar of the process for changing occupancy and the potential need for a special permit from planning, and the possibility of triggering the need for a fire sprinkler and fire alarm system. I’ve done this type of thing before but it was a 3-fam so there were different financing options available at the time. Much appreciated! Thanks, Mike