4 Townhomes Package Deal Financing

[Joe Garretson]

Got an interesting listing I'm looking at. There's a set of four townhomes listed together as a package deal. I did some research and it appears it's an older gentleman who bought these four separate townhomes and is now trying to sell them as a single multifamily investment. The townhomes all have their own property tax info, assessment details, etc so this is where it gets interesting.

I'll use mostly real numbers. Let's assume asking for the package is $2 million. That puts each townhome at $500k. I am working on verifying each home is identical; I don't think they are; but for simplicity's sake...

Market value is closer to$600k for each townhome should it be sold separately on the open market. That's mighty close to an 80% LTV if I were attempt to refinance each townhome separately after purchasing.

So my question is, how would you go about getting a loan for the initial purchase? Is it a hard/private money loan for $500k for 25% down on a $2M purchase? Commercial loan?

This is well beyond my financial means to tie up but this looks like a diamond in the rough type deal. These townhomes are new builds with tenants in place in a very strong market. 

My exit strategy would be to get out of the bigger loan as quickly as possible and then end up with four separate townhomes on their own mortgage which I could handle on their own. Continue to rent, sell one or more. Lots of options.