8 plex scenario, ?deal

[Amanda Paugas]

Hi everyone!

I'm looking at a possible deal and was looking for some input on how others may handle this. 

The deal is.....

8 units, 3 separate properties (1st house- duplex, 2nd house- duplex, 3rd house- quad)

Asking price is 750K. 5 units currently rented brining in around 4350, 3 vacant that could bring in potentially 3300-3400. I have 100k in private money that I have raised, none of my own, but I do have excellent credit and a hard money commitment letter of up to $1M. I have done 5 deals in the past 6 years, including BRRRs and flips and am looking to scale. 

This property was on market for a hot minute, and then taken off and has not gone back on yet because the seller 'wasn't ready'. I'd like to see if I can still get this as an off market deal at this point, but I'm not sure how to structure this, or if it would work for me. I have NOT seen the property inside as the gentleman was not ready for showings and then took it right off the market. From my due diligence, it looks like this property could be worth 800-900 in good condition. Obviously, if this were to need a lot of work, that would be a no-go. If it is in good condition interiorly, and this truly is a good deal, how would you guys work this? What would your exit strategy be? One of my private lenders doesn't necessarily want to tie up his money for 30 years, so my thoughts were....

buy in LLC or my own name with hard money, refinance and hope that the equity will be 25%? Go for a conventional loan, but then I wouldn't have 25% OOP, try seller financing (although there is an agent involved who has a reputation in the area for kind of being a pain to deal with). Any thoughts or ideas would be hugely appreciated!

Thank you BP community!