Multi-family deal help

[Victoria Woodley]

My husband and I have no shortage of deals we have found in our market. Our problem is finding ones we are able to finance. We have become extremely creative, and have narrowed our search down to a triplex fixer upper that we would house hack. The problem is it seems a bigger beast than we have the initial money for. We would probably be able to finance the initial purchase, but would need to have the two units we are not living in cash flowing ASAP. As far as we can see it will need LBP remediation (in Alabama you can seal it and paint over it) so probably $6k in total for both units to be rented, and an air system in place. Ductless will be about $8k for both units. Everything else we could and would do ourselves (floors need tlc along with some deep cleaning). My question is, would anyone be interested in potentially backing the renovations? We would exhaust a majority of our loan initially obtaining the property with probably only about $5k left for renovations depending on how negotiations go. The two units should cash flow at about $650-$700 a piece. Also, if you’re looking for deals in Alabama feel free to reach out.

[Michael Lee]

Hello and welcome to this site Victoria!  The more units your failure will go down in the percentage.  You are doing one of the things I approve on buying a rental house.  Usually, the better the deal is will make the financing more available.  Do not believe any myths to keep you away of doing apartment house complexes.  I like using income and the power of using the cap rate over Sales Comps.  Another reason I like apartment complexes any vacancy does not usually hurt you like it would in a residential multifamily place would.

Some Private Lenders will also lend to you including any repairs but I understand the importance of using a Bank to get a "house hacking" loan and its low down payment..  Your location is an important factor on rentals as well as nearby amenities and the retail development near there.  Those mentioned factors will effect your demand.

Good luck to you both!