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Updated over 3 years ago, 04/20/2021
How to acquire and Rehab creatively with little cash
So, if you know anything about the DC area its completive and extremely hard to break into. I've identified an off market property in Maryland.
3 properties in portfolio : zoned mixed use: #1 4500sqft ( vacant, open floor plan) #2 4500 sqft ( vacant top floor is office space ( 2250sqft), bottom floor open space) #3 2500 sqft ( occupied-retail )
I would like to build out property #1 and #2 to residential units both with 5 units and I will update the 3rd property and it keep it as retail.
Any suggestions on financing ? THIS PROPERTY HAS BEEN VACANT FOR NEARLY 2 YEARS. The owner bought the property for 300k in 2015. The property is distressed, but not beyond repair ( no rotting or structural damage) They only income is coming from the retail store in #3. The neighborhood is "up and coming", but it will take another 7-10 years to start to see improvement. I have 90k to my name in cash. Zoning will support my plan, I've talked to permitting office and engineers who have given me the green light ( in theory)
My END GOAL is to buy and hold this property
Options:
-I was planning to try to master lease with option to buy in 2 - 3 years for 350k ???? ( im not sure yet of offer price, hard to gage because it's vacant and hard to gather comps), and use my case to rehab or maybe a bridge loan
- Seller Financing ?? Any suggestions
-Hard money then BRRRR
- bank loans?
- portfolio loans?
Please help all suggestions would be great.