Please help guide through commercial deal

[Chris Mackinlay]

Hi BP.

I have an opportunity to buy 6 property complex. It's more like a small village. It's one property, but has 4 buildings on it. 

The current owner has it financed from private money. I can get into it for $20k and I'd take over the payments of ~$1450/month for the next 14 years. Then it'd be paid off for $263k, total cost to me. That includes principal and interest.

Most of the units are small studio apartments that would rent for $950/month. 

They are trashed. I walked the property with a contractor, it would cost me north of $75k to rehab all 6 units. I'm sure this will increase. All of the units will need extensive electrical, plumbing, sheetrock, fixtures, probably gas lines, some need masonry work, another has termite damage, two others have mold from failed siding, there is some roof repair to be done, tiling, basically everything. Like I said: LOT of work. The bonus here is I can set up separate meters for each unit. 

Problem is I don't have $75k laying around to fund this, so I'll be pursuing my own private money to make it happen.

Private money to hold the note, more private money to rehab it. Is this generally a stupid idea?

After all these repairs, the property should be worth at least $400k (I'll be clarifying this number some more tomorrow) and I'd like to explore a commercial loan. What is a general rule of thumb for loan terms so I can have a plan for a refinance?

Thank you for any input or experience!