Multi-Unit (7) BRRRR

[Jonathan Roberts]

Hi All!

I have a deal that I am analyzing and I wanted to get some opinions. The property is a 7 unit apartment building that is in need of some repair. The seller has agreed to seller financing, and I am currently in contact with 5+ contractors to get a concrete idea of the repair costs (my estimates/the sellers are 25-35k). 

My plan is to purchase the property via seller financing, perform the rehab, rent out the units, establish an NOI, and then refinance. (The BRRRR strategy).

Deal Numbers: 

Purchase Price: 170,000

DP: 25,500 (15%) 

Repairs: 25,000-35,000

Estimated Rents: 3500-4000/mo

Some questions that I have: 

1. How long does it take to establish an NOI? I spoke with a local credit union that I have a relationship with and they said they could refinance right away and I was surprised by this (I have read a lot about "seasoning requirements").

2. Does anyone have suggestions for out of state commercial lenders? The credit union that I have a relationship was fine with doing residential loans for folks out of state, but told me that I would need to be in-state for a commercial loan. (The property is in Grand Rapids, MI - I am located currently in the Bay Area, CA). 

3. Is there anything else that I should consider with this being a commercial property? This is my first commercial deal, so subsequently I am a bit timid. 

Thank you all in advance for your time and thoughts!