Funding options for a duplex??
Ok so I'd like to hear others suggestions for any other options that maybe I didn't think of for financing this deal.
I'm currently negotiating a duplex home. Purchase price will be right about 100,000 maybe a little less. The owner owns it free and clear but given her age she is not interested in seller financing and wants to be cashed out. The each unit is currently renting for $800/month which is low for the area. It can and should be getting in the range of $900-1050/month. I've done the analysis and given the current rental numbers it would still cashflow using conventional loan for 80% and using a HELOC to supply the down payment at 8% for the remaining 20K. This would be my preferred option because the interest and payment rates will be the best for the cash flow.
Options I'm looking into:
1) Getting a private lender to supply 25,000K at 8% interest only for 3 years then refinance and pay off the 25K (is it possible to do a 80% conventional loan with private lender providing the down payment?)
2) Getting a partner in on the deal but not sure of what equity or cash flow split.
I'm sure their are other options I'm missing but if anyone has any good suggestions I'd really appreciate it?