How can we buy cash flowing triplex with little money down?

[Alma Mills]

So here is the potential deal, love to hear any ideas. Purchase price is 600k on 3 unit property that should cash flow. I am trying to find out what is the best way to finance it either for short term (flip) or long term(30 years). Price is maybe a little high and that is why it has been sitting on MLS for about 200 days. It probably needs a lot of work. Owners only owe about 250k on the property so have some significant equity. What would you suggest is a good way to get the property with little money down?

My mortgage broker tells me that the owners can't give me the 25% down needed for down payment like it was done in the past. If the seller is willing to have me assume the loan what would be ways to pay them the remaining balance? If they are willing to give me seller financing what would be ways to pay off their loan? Or are their other ways to pick up this property? Thanks for your help.

[Matt Mason]

Originally posted by :
Purchase price is 600k on 3 unit property that should cash flow.

A semi decent property that will cash flow in Los Angeles would likely have been scooped up, not sitting around for 200 days. I would do more research on your expenses to determine if you can change that statement to it will cash flow. Be sure to consider vacancy rate, repairs and maintenance and capital reserves in addition to the normal insurance and property taxes. Just use the 50% guide/rule if you aren't sure about those. If it needs a lot of work, just have your agent ask what type of shape the building systems are in.

If you are still good with it then you can think about partnering up and going for it, but on the surface it seems like something is not adding up.