How to get past finance hurdles, and are private notes an option?

[Glenn Gray]

I've been pursuing a deal to invest $20k, sourced from my SDIRA using a 65% LTV solution. This loan solution must be non-recourse and is designed for the purchase price of $50k, and loan amount of $32,500. Borrower will pay all closing costs. This is a buy/hold investment that I intend to earn a 13% CCR in the first year.

The property is a 912 sq.ft.2bd/1.75bth townehome in Aurora, CO, constructed 1980 with basic operating expenses detailed below. If I could find a Finance structure that works, I think I would have a winner to put in my portfolio.

My current challenge is, I'm not able to find a finance solution that will offer terms that will make this a winning investment.

*Finance Expenses

$50,000 Purchase Price

x 65% LTV

$32,500 First Loan

@ 4.75% (5/30-year Mortgage)

$233/month Principal, Interest, Taxes & Insurance (PITI)

*Operating Expenses:

$800/month Proposed Rent

x 75% (to discount for vacancies, utilities, etc.)

$600/month "Discounted Rent"

$600 Discounted Rent

-$233 Mortgage Payment (PITI)

-$235 HOA Dues

$132/month Positive Cash Flow