Ensuring Proper Analysis of Property w/ Private Lending & Loan

[Matt Campbell]

Hello, BP crowd! I have a private lending partner who is willing to contribute up to a few hundred K, initially. Once I show him proof of concept, then potentially much more. The play is to buy and hold....He will not have an equity stake in the properties. Paying him a % monthly fee with a principal balloon payment between 12 to 24 months...

For context, I have 5 units, bought and self-managed out of state, all cash flowing. I am unable to obtain a loan from a conventional lender at this point, given the 5 properties, without my partner's capital. And perhaps even not, with the capital...

Question

Advice on how to calculate the appropriate metrics when analyzing properties given the details above? Potentially two sources of debt (two private lenders? my already established partner, + traditional lender?), with different debt maturity dates and interest-only payments as previously stated)...I think I have it ironed out, but I'm not 100% confident.

Thanks in advance :)