Scenario breakdown of 6 unit property

[Sachin Bhat]

So I have this 6 unit property under contract that needs about 40k-50k in repairs.

Purchase price $89900

Total Rents after repairs $3400

This is in C class neighborhood

My question for seasoned investors on BP is how would you finance this deal and

What would be your strategy?

I would like to use leverage as much as possible.

I called couple of hard money lenders but they don’t finance if the property price comes under 35k. Is there any hope to get this deal done without paying all cash for it? Thanks in advance.

[Sachin Bhat]

@Christian Nachtrieb No worries brother. I usually post so it can help everything on BP. So, they can learn from my scenario. As far as the reserve the bank want to make sure if the tenants move out of you have vacant property you are able to still make that monthly payment. The rule of thumb is you need 6 months reserve saved that can cover All the monthly expenses for that property.