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Updated over 6 years ago,
First Apartment Complex Advice??
I’ve finally put together my first deal! A customer of mine, from when I had a small construction company, had a property to sell. Her and her husband previously had nearly 40 properties and one of the last ones left is a small apartment complex that sits on two acres of highway frontage. There are 6 total units, each Is separate, solid slab, and cinderblock home. There is one 3/2, one 2/1, and four 2/2. All but one unit has been vacant for nearly five years. After her husband passed away she did not ever re-rent the units. Because it seems she is not hurting for money due to having sold the previous properties, and she does not care to fix up this property, she made me a really great deal. Even though I believe this is still a low appraisal, the county is giving the property a valuation of $105,000. My customer told me that all she wants for it is $60,000. Yep, $10,000 a unit. She will also carry the note with no down payment, and no interest. Simply $1000 a month for the next 60 months. The property is in a highly desirable location known for its oilfield population. I think with $150k I can rehab all 6 units for a total of $4950 in total rents.
My question to anyone willing to lend advice, would be, how to finance the rehab while not having to lose out on the 0% interest owner finance arrangement??