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Updated over 7 years ago on . Most recent reply
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How Do You Force Appreciation/Finance Reasonably priced MFRs?
Posting here because it's really a financing question.
I've found a few properties in my area that are "retail priced" but have areas that have been ignored by the seller which could improve cashflow to a worthwhile level; for example, not charging pet rent/pet fee, not charging extra for private, fenced yardage, not charging for laundry in-unit. Similar properties nearby sold for about what the seller is asking. I will, of course, try to get a better price, but my issue is financing.
Lets assume that bank/credit union financing is off the table, as is seller carry and loan assumption. That leaves hard money/private money (That I am aware of). Lets also assume that I don't have a large down payment readily available. Is there a way to structure this to be desirable to hard money/private money lenders?
Normally they want flippers who can show a drastically increased ARV. This isn't that kind of deal. If this were commercial, it'd be cake since the income can be shown to be improvable by $75-150/unit but ultimately this is a buy a hold w/ light rehab. Increasing the income stream won't effect the value the same way it does in the commercial world.
Thoughts/Help?