Structuring a deal on mixed use RV/Mobile/SFH/Storage property
Hey BP community!
I ran across an interesting deal and wondering how to proceed?
About the property: Mixed use property with a SFH, 5 RV spaces, 3 storage units and a larger separate garage. Everything is currently rented. Cap on the property is 16%
There seems to be interest on the property but it is not able to be financed so I think that seems to be drawing people away. I think that some creative solutions could make it work.
Property is 385k, total rents 5400/month. Expense ratio is about 40%.
Question 1:
I don't have a lot of cash so I am thinking of structuring as follows? Hard money at 50% LTV @ 10% 2 year balloon(Talked to a HML that is interested), owner carry 150k at 7% 2 year with balloon(Agent says he is open to carry, owns property outright), and me coming in with the rest of the cash.
Question 2:
At the end of two years how do I know a commercial lender will want to lend on the property? I didn't try initially because I don't have the down payment that commercial typically want. I'd hate to get to the two year mark and have balloon payments to deal with and not able to refinance?
Just trying to think of some smart solutions to make the deal happen.
Any insight is very helpful. Thanks so much!