Help Financing small portfilio of MF houses

[Alexander Merritt]

Hello BP Members,

I'm hoping you all can help me with some ideas of how to Finance the purchase of a small Multi-Family portfolio. I have not contacted the seller yet so I don't know what their situation is or if they would be willing to do any creative financing. I have about $40k cash available to use. I also own my house and have about $100K in paper equity in the house.

The portfolio consists of 11 properties and is currently 80% occupied. If my calculations are right, with 100% occupancy the portfolio will have just over 10% CAP rate which is good. The problem is that this is not a flip. This is a straight purchase with an asking price of $800K. If the properties need updating I could renovate the vacant units and increase the rent for those units. Does that mean Hard Money is out since they want 70% LTV? Even with a HELOC I don't think I would have enough for a 20% down payment for a bank loan. A Master Lease Option (MLO) could be an option if the seller is open to it and they own the properties free and clear (which I highly doubt.)

Any thoughts, suggestions, or ideas is greatly appreciated and thank you in advance.

- Alexander