First Deal, Without renovation money
We are looking at a 3 family in a extremely hot market and area outside of Boston (Malden) within 2 minutes to transit and lots of restaurants and shops. The 3 family is being offered to us off market at 700K. Porjected rents, when units are renovated would bring in potentially 6900 per month. The renovations include, a new roof, new plumbing, kitchens, paint, putting up a few walls. The issue I have run into is, we don't qualify for a 203K loan to do the renovations to bring the units to market rent. We are first time home buyers. If we rent the units as is, we should be able to bring in $5400, which would cover our mortgage and then a little extra. We have estimated about a 100K worth of renovations for the items listed above. We don't have the 100K to renovate, should we proceed with renting the units as is and then budget for renovations? Or should we seek the renovation money through a partnership?
Any and all advice is much appreciated.