Financing 16-unit building in Mississippi

[Arijit De]

Hello,

I have 16-unit apartment building in Mississippi (8-units in each building). Both of these buildings are in the same parcel. I purchased this property with hard money lending to close the transaction 2 weeks back. Now I am looking to use loan programs for financing this. When I am reaching out to few lenders, either I am hearing that long term rental loan isn't there for > 8-10 units OR can't do the loan because the loan amount is lesser. So I am kind of stuck with what financing options do I have that should help with this scenario.

Any thoughts, connections or suggestions of what loan programs can be availed or how to go about it, would be appreciated.

[Weston O'Dell]

Arijit, 

Congrats on the deal, sounds like a great asset to add to the portfolio. You really have a couple routes to go with the scenario. Either, proceed with a value add approach and structure a refi/rehab short term loan that provides renovation funds in order to reposition the property and push rents. Then you can refinance into long term debt once stabilized and get a true value look. Seasoning on this can be done <12 months so long as work has been completed. Alternatively, you could move straight into a longer term program that will essentially structure the deal as a "delayed purchase" and underwrite in place DSCR/occupancy. This route will be limited to original purchase price as value basis and will be capped at 75-80%. This also will have some form of prepayment penalty associated. Both are great options, let us know how you proceed!