Financing for a abandoned commercial multifamily property
I would like to get financing on an abandoned commercial multifamily property in Tacoma WA. The property has more than 4 rooms so it don't qualify for residential mortgage. I intended to use it to help the special need or disabled veterans in short term or long term housing need. I visited 7 banks today and most of them do not want to finance property since it is an abandoned property and it requires another rehab loan to renovate the building. I was told the wiring, plumbing and HVAC need to be redo. Does anyone have any idea or can help me to finance this acquisition? Any lender could do this? I am also willing to offer money management or other misc classes for them at no cost. This is the least I can do for these gentlemen to get their feet up again who once served our country. I am also curious whether there is another federal grant I can apply to help out with the renovation. Any advice is appreciated. Thank you
Most Popular Reply
Billy,
The numbers have to really work for it to be worthwhile... I struggled to find financing for a boarding house here in CT. In the end I found a bank that didn't blacklist them 100%; if the deal worked they would lend for it. I'm sure there are other banks in your area with a similar school of thought. It just comes down to finding them. Just for comparison....I bought mine for $70k; so far it has 5 tenants (4 vacancies) in it bringing in ~$30,000 and the annual expenses are around $24,000 (including a 15 year mortgage). If I knew my expenses would be so high I may have passed on this property. But also, highly consider what you offer for free and ensure there is money to be made.
If you end up paying $150k after remodel was it still a deal?