Mehran Kamari Sorry I was short on detail, I need some creative finance ideas. I'm selling my personal residence, and I have about $23,000 in equity which is not enough to pay all cash plus some rehab. Since my home valued at around $95k, I can only get $5500 on a cash out refi.
That's not enough for a 20% down payment. Partnering with another investor may be a good option. Should I also look for private funds or hard money since a conventional loan only works if my personal residence sells?
About the property: It's a two story home that is rented to two families. Unfortunately, the home shares all utilities on one meter (has electric and gas) and the current owner pays the bill ($300 to 600 month for electric, gas bill is unknown). The $8k is to have licensed electrician relative split the electric, convert to electric hot water tanks, and open the property up to 4 units instead of 2. The tenants are both month to month and one wants to stay and one mentioned leaving soon, and the landlord is now collecting $500 and $550 for the two units totaling $1050. When I make the changes to the meters and repairs, I should be collecting a minimum of $1150 from 3 units within 1-2 months, then another $300 from the 4th efficiency apt for a total of $1450. I'm researching to see if I can collect more rent than my current projections. The PITI for the home will be roughly $400/month, and I'll have tenants pay electric after conversion.
