BRRRR Strategy ? Need help

[Adam Heseltine]

The property in question was left to a daughter when her father passed. Because of several conditions she could not sell the home right away - and reached out to me for help. I proposed that I manage this property for her and get a renter in there so she can cash flow monthly on it. After several months of work and tennant interviewing I secured a renter for her. The property is currently tennant occupied and she takes 80% while i collect the other 20% for mgmt fee. Her goal the entire time was to sell the property as she wanted nothing to do with it - I proposed she sell it to me and we agreed on a purchase agreement/price (roughly 40K below market value). She has since signed the PA and now we are coordinating a few other loose ends to hopefully close in the next few months. While I currently have a large fix/flip going which has forced me to leverage both cash on hand and majority of all my credit. Unfortunatley this compromised my credit in the last 18 months by about 100+ points = putting me in the low 600's (ugh). Speaking with a bank recently the interest rate they will give me to currently cash out on another investment property is 8%. The numbers don't work - I don't have enough equity in my existing rental portfolio to cover the purchase price of the new property. I would have to take out a mortgage + refi cash out.......the existing renter in this potential rental is $1200. Just the cash out on my existing would be around 1K monthly and still leave me way short to aquire the property. Potential Property Sale Price: 85k (120K Market value) Existing Renter: $1200/month Available Cash out: 30K Rate: 8% + taxes/fees: 950/month Mortgage remaining 55K: ?? Sorry for the long post - looking for some direction. Don't want to lose this deal which I have been working on since November of 2018. Thanks guys. Adam