Funding a deal mixed use property
Hello everyone, I joined bigger pockets a while ago and I need some help on how to finance a deal I found. It is a mixed use building in queens New York. It is being sold for 550K but a identical property sold a block away for 775K. The reason this property is being sold at such a discount is because the storefront on the first floor is only paying 1500 a month in rent, where others are paying 3500 to 4000. Also the second floor has two units that rent for 1100 each, those could easily rent for 1500 each. Taxes is 15000 annually. The seller wants to sell with all current tenants at current rents.
The two residential units have no lease and the storefront has a 16 month lease. I think I can get the storefront to sign a new leases because I will offer a discount. Rather than raising rent to market (4000) I would offer 3000 per month for 5 years with a 3% annual increase if he is willing to sigh a new lease.
I found a bank that will finance the deal but they need 30% down, I could do a FHA loan but the units are not going to be vacant so that’s why I can’t use that option.
My issue is I don’t have the 30% to put down on the property which is roughly 165K. I’m trying to get private money from family and friends but it’s a lot to come up with.
While thinking about this problem I realized that I have a whole community available to give me advice in bigger pockets so I’m turning to everyone of you for help.
Can anyone tell me what options I have to finance this deal?
Thank you for all input