Blanket Loan / Equity Partner

[Alexander Munro]

I'm an active RE broker from the Ann Arbor, MI area, and also rehabbing a 10unit mixed use historic bldg (7700sf between 5 apts and 5 retail/office storefronts) in downtown Ypsilanti. I also have another house which doesn't have much equity (maybe $60,000 after expenses), but it nets around $1000/mo (it rents for 1.75x the monthly costs and tenant pays utilities).

Because of the building I'm rehabbing, I have been stretching my dollar and putting in a lot of sweat equity in the property. I bought the 10plex through the contingency sale of my own house, with that and the additional spend I'm probably 70% complete after about a year's work and spend (my basis is probably 325/450k total), carrying no debt on it. Plan is BRRR, and once finished and leased I would borrow about $250,000 @ $1500/mo, on an asset netting $5000/mo, it seemed prudent to pull that cash back out and do the same thing again.

The question is this... My plan is to do the same thing again, but the problem is that I have an opportunity to pick up another distressed property similar to mine (40% smaller, far fewer repairs, with an existing restaurant downstairs and undeveloped upstairs suitable for 2-4apts). I'm able to get my hands on this for around $20-25/sf, if I can seize on my opportunity to get it before it hits the open market, where it comps for 40-50/sf and could easily go higher because of current market conditions in our county.

What I'm wondering is, is there any way I can access the credit off my 10plex faster for me to snatch up the 5plex across the street? Or, rather, what would you do?

Thank you.