5-plex in central Arkansas under contract...JV partner wanted
Hello BP world!
I have a 5-plex under contract at
Judsonia, AR. It neighbors a nursing home in a B neighborhood. It has 2/1(2) and 3/1(3) all situated under a 2 year old roof that cost the seller $20k. All units have washer/dryer connections and includes all appliances. 3 of the 5 units are rented out. 2 tenants have been there for over 7 years. I requested the seller not fill the units in order that I may do minor updating and seek higher rents. The seller hasn't raised the rents in 5 years because of wood paneling and what appears to be original vinyl on the concrete slab floor. The seller updated one 2/1 unit with tile flooring throughout that cost him $1100 total.
2 - 2/1 * 350 = 700
3 - 3/1 * 350 = 1050
Taxes 1680 annual (taxes likely to go up with new appraisal)
Insurance 1300 annual
County appraisal - $199k from 2011
New metal roof 2 yrs ago for 20k
Washer and dryer connections
Cash flows as is but 3-5k per unit in updating can bring $75-150+ per unit
My original intent was to wholesale this property. However, with due diligence, I'm wanting to keep these properties. Unfortunately, I won't qualify for a commercial loan for at least another 6-12 months. I'm working with a credit repair and business credit specialist. So, I am looking for interest only private financing for buy and hold with a cash out refi as the main exit strategy. Can anyone help me out? If not, I'm open to wholesale
Message me for a video of the vacant 2/1 and pictures of the vacant properties.