18-unit BRRRR Analysis

[Simon Wold]

Hey All-

Came across a property today. Here is the link to my quick analysis:

It is going to go to auction on Friday and opening bid is 413k. I think the deal looks great, but would like others opinions! I have three rentals (two 4-plexes and one condo) so I have some experience, but nothing of this scale. My plan would be to use the BRRRR strategy on this one.

Is anyone familiar with financing these deals? I have private money available to make the 450k purchase cost, but would have to get the construction costs elsewhere. Could a HML be acquired after purchase to pay for rehab? Could a HML be used instead of a private money investor to purchase / rehab? Any help is greatly appreciated. I am more unprepared in terms of having my financing options available for a property this scale, but this deal seems too good to pass up!

To note:

• Property was mismanaged by new owner and led to foreclosure. See: http://www.apartmentratings.com/wa/tacoma/carlyle-apartments_253581061498499/
• 200k rehab budget may be excessive. From the reviews it looks like it is going to need flooring, ext/int paint, cabinets, upgraded entry doors, maybe windows.
• ARV will be ~1,000,000. I put 900k to be conservative.