9 unit that needs financing

[Devin Peterson]

Hi BP team,

Usually, I am the one on here helping others answer questions but it is now I the one who needs some help. There is someone I know who is under contract for a 9-unit multifamily in Terre Haute, IN. The issue really with every DSCR and commercial lender out there is the loan size and price per door. I don't need to hear from any of the traditional DSCR lenders on BP here because I know all of your underwriting guidelines and it won't work, but I will happily accept your advice. What I need is a creative solution or a private family trust to lend on this property. I may even have to shop locally but I wanted to put this out there to mastermind some ideas. I already sent it out on privatelenderlink as well. Scenario below:

9 unit

278,000 Sales price

buyer can do 30-35% down

800 FICO

DSCR 1.85

Annual insurance - 2400

Annual taxes - 1200

Monthly Gross rent - $6265

Annual NOI - $31,500

Cap Rate - Roughly 16%

Price per door - $31,000

Buyer liquid reserves - $160,000+

The issue seems to be the fact that it's a full-blown commercial property and the price point it's being sold at. At only $31,000 per door, most lenders don't have an appetite for this because their note purchasers are not interested in the possibility of a reno, major property upgrades, essential a rehab budget that could easily triple in size from underestimation.

Please let me know if you have any ideas.