Which Lender should I go with
Hi Everyone need some advice on which lender I should go with. Little background info 10 unit apt building currently bringing in $5400 gross a month. 5 studios and 5 1 bedroom apts. Price is 595k. A neighborhood great location. Fully leased now but can use updating to get it at market rents at about 8k a month gross. About 100k in exterior code violations mostly 200 LF of box gutters. Has already been appraised for 1.12 million after cost renovations and once stabilized.
One Loan option is 700k total purchase, 100k in escrow for repairs, 4.25 interest rate 3/8 point closing cost, 25 year amortization, 140k down payment. Once building is up to code they talked of giving me 100k line of credit for interior renovations.
2nd Loan option 950k total loan option, only 100k down, 4.75 interest rate, 1 point closing costs, 25 year amortization. It would be a construction loan with 300k for interior and exterior renovations. Anything left over I get to keep. 12 months interest only.
The thing with the 2nd option is I just heard back about this option and I am scheduled to close November 2nd. If I ask for extension it is $200 a day and the 2nd bank would need at least 2.5 weeks if not little longer to close so we are looking around $2000 for an extension. Also I think I would be burning bridge with 1st bank bailing last minute. What are your suggestions. Any other questions please let me know.
Thanks!