What to do? Opportunity and weeks away from cash

[Raymond McGill]

I have found a multifamily I want to rehab and keep as my first multifamily rental. The numbers are crazy good (71k purchase, ARV $275k, $2100/mo cash flow). My last Rehab will be going on the market this month, and will generate 70k when sold. My spare car is up for sale for 7k. I have a great record of profit from previous rehabs.

I have 10K in the bank.

The property won't go conventional. I want to get Private/HML loan for $130 for purchase and refurb, but my 10k doesn't meet 25% down ($18k) and 6 months reserves (6k).

The house is a short sale. I heard that they can take forever, and someone said 'just put in a contract'. I don't want to lose earnest money if they come back immediately and I don't have the funds. I don't have experience on what to expect with short sales.

I am going to talk to HML and Private lenders when I am confident I will get a 'yes'.

I have always paid cash. with a Private/HML, does the 25% down apply to property price or total loan?

Are my assumptions of 25% down and 6 months carrying costs valid?

What happens with a short sale? Should I put in a contract ? Where are the gotchas ?