To deal or not to deal? how to make it happen?

[Ashley Powell]

Hey Everyone!

I am a newbie investor that currently has 3 properties. 1 long term, and 2 short term rentals, all single family. I closed last month on the newest short term rental property. This weekend a property was brought to my attention, as a potential new investment. It is a small multi-family property, that is is really good condition, with minor cosmetic upgrades needed (the kitchens and bathrooms are dated, but still functional). I am very interested in the property and have been running the numbers, but I need to make a decision quickly if I wish to proceed. This would be a buy and hold.

Here are the numbers:

unit 1- currently rents at $830/ rental potential unfinished- $1050/ finished $1300

unit 2- currently rents at $750/ rental potential unfinished- $850/ finished $1050

unit 3- currently rents at $550/ rental potential unfinished- $650/ finished $800

Total income: $2550/$3150

Purchase price: $350,000

Total cost to renovate: $80,000

After repair value: $480,000

Monthly cash flow is $627 with is 5% CoC RoI

I like the numbers on this deal, and this area is only expanding and growing so there will be appreciation over time.

So, I am looking into creative ways to finance this deal with little or no money down. I have been looking between seller financing and hard money lenders, but worry because I am a newbie investor and just closed on on my last deal that hard money lenders may not be an option. I am meeting with the seller this week and if I would like to bring up seller financing I would like to know a bit more or how I would run numbers or structure the contract. The property is in NC.

Thoughts on the deal, ways to get creative, or options between seller and hard money financing?

Thanks in advance BP Community!
~Ashley