Financing an 8 SFR Portfolio in Iowa
Hi BP Community,
I have been offered an offmarket deal from a landlord and property manager with over 30 doors in IA. He brought me 8 SFR's he'd like to sell as a package and continue to manage for $50/mo per house. The taxes are $862/mo, and the insurance is $350/mo. The Gross rents are $5,990. The asking price is $550,000 and the value of the properties is around that or a little higher. They're all turn-key, already rented, no obvious deferred maintenance. These are quality.
My question is, should I pass because I'm not in a cash position to buy it, or should I continue to be creative and try to find a way. My first dead end was a portfolio lender in that local market saying they dont allow a 2nd lienholder, even though the seller will carry whatever amount I need, but he does want to cash out at least half.
I'm curious if any private lenders will lend around 6% or 7% for longer terms, like 30 year term with 10 year balloons. If that exists, how do I find it? I have done what BP authors have said and have networked a lot at meet ups. Is there anywhere online that aggregates private investors and allows you to search by criteria? Also, do these type of lenders always care if they record a 2nd lien?
Any help to move this forward would be much appreciated.
Thank you!