Financing Unwarrantable Condo

[John E Ceisel]

Hello,

I own 3 out of 9 units in condo complex (it's a single building complex).  Because that is 33.3% of the units, the complex is no long warrantable according to Fannie Freddie guidelines.  In the past, I was able to get portfolio loans from Credit Unions to finance my purchase of the units. 

There are 2-3 units coming on the market in the near future that I would like to grab as it'll be low overhead and I know the market rents, the building, and am on the board of the HOA.

That said, I am having trouble getting financing.  They'll be around $150k each based on current market prices.  I'm happy getting one or two of them for the time being.  I can't get conventional financing or any more portfolio loans (not a primary residence). 

Any ideas on how to finance? I have a HELOC available with $53k, but not sure what the best approach is to get the other $97k. I'm going to have to think outside the box on this one (maybe credit cards and/or hard money, but those are all very expensive). With decent financing, these will be cash flow positive. I appreciate any feedback/thoughts you can offer.

Funding Strategies (some brainstorming)

• Down Payments/Cash
  • Self
    • Cash from checking/savings
    • 401k withdrawal
    • Sell property
    • Sell car
    • Credit card advances
  • Banks
    • Personal Loan from
    • HELOC on existing property
    • Home Equity Loan on existing property
    • Refinance existing property
  • Other
    • Hard money lender
    • Personal loan(s)
    • Investors
      • Legal ramifications?

• Mortgages
  • Bank
    • Conventional mortgage
    • 203k FHA mortgage
    • Investment mortgage (20% down)
  • Credit Union
    • Conventional mortgage
    • 203k FHA mortgage
    • Investment mortgage (20% down)
    • Portfolio loan
  • Other
    • Take mortgage on directly from seller