9-Plex longterm MLO rehab financing.. advice needed!

[Nicholas Fisher]

BP!

There is a 9-plex vacant/abandoned apartment building that a local municipality owns I am very interested acquiring. It has been boarded up for several years, although they do maintain the grounds. I’ve expressed my interest to the decision makers, but they say right now the property cannot be sold (long story but I know why and understand). I bought a similar single family house from them a few years ago, and I know they do ultimately want to get rid of this 9-plex. I am going to propose a long term master lease option where I lease the complex for $1,000 per month for 30 years. When I bought the single family, this complex actually sold to someone else for $35,000 but the deal fell through and they never tried to sell it again. I am going to propose an option to buy at $35,000 at the later date. I actually prefer to leave them as the titled owner because there are no property taxes as government entities cannot be charged taxes. Here’s where I need the advice...

I’ve got 25% of the cost to rehab, but would any institution agree to lend money on a property I don’t own? Even if I have a long term lease? How could I get reasonable money to rehab the complex?

The property will cash flow like crazy due to limited inventory in the area, good rents, and no costs for initial purchase price or annual property taxes. I’ve already had people tell me if I get the complex they will pre-lease units. I need advice on how to get rehab money on property I won’t own and won’t be able to sell. I could structure the deal to be able to sell the MLO before the option period and base it off the cash flow and future purchase price though.

I hope I’ve done a good job explaining the situation.