Financing for rehab of a MF 6 unit? Lease out to flip?

[Carson Wilcox]

I am looking at a 6 unit.  vacant.  2 3 unit buildings.  

Purchase will be like $580k, probably $20k per unit average rehab MAX... Originally I was thinking to BRRR it, still might... But I am now thinking flip. after driving the neighborhood... not too into it...

What are my options for flip financing...?  Just Hard money?

Also... realtor/BP new friend says it will sell better if it is leased up with tenants before selling.  Thoughts?  To me, this seems a pig in a poke... spend $10k in holding costs renting it out, and all the $ involved... to MAYBE get a better price...?  OR will the prospective buyer want to see it rented for x$ per month in order to justify price?  Love to hear some experiences...  

[Joshua Fulenwider]

@Carson Wilcox Financing vacant multi-unit rentals is difficult because it is hard for lenders to determine the actual cash flow.  When you go to sell it with less than about 12 months of  income and expense history you will be limiting yourself to buyers that have access to more cash and/or better financing.  These people should know that the property may be difficult to finance and will most likely drive for a better deal.

As far as financing the flip you can seek a commercial construction loan for the purchase and rehab. However, they will also want to see a plan to get it rented.  Hard money lenders may also want this but it is difficult to say as they tend to make a lot of their own rules.