This looks like an oportunity that you don't want to let slip away. It is very similar to one that we purchased last year. In our case, I brought 25% down (125k), and the seller carried the rest at 5% with a 5year balloon. The fact that your seller is willing to carry back half (assuming it's at a decent rate and terms), is amazing. It looks like you're short $210,000 plus closing costs. If it was me, this is where I would go start talking very seriously with a couple friends that had expressed an interest owning real estate. Don't forget to look at your other assets. You said "next" so it sounds like you have an asset or two that might have some equity you could use. If you think the deal is good enough, you might be able get a hard money lender to take a second position lien against the subject property if you also let them lien your house or another investment. Also, it should be easy to find hard money, and maybe even a credit union that will lend if they could be in first position.
That's all I can think of right now.
Where is the property located? What is the current value
Thanks for the replies! The property is located in Phoenixville, PA and the market has been pretty hot the last few years. The property is made up of one building that is a 4 unit and another building on the back of the property that is a garage on the bottom and a 2 bed/1 bath unit up top. With the rents being below market and with minor increases, the value seems to be there. I'm just having hard time figuring out the best approach to the purchase.
I think you're right about the private money here. Let me know what you think of my numbers. These are assuming we can get them to closer to market rents.
Or you can partner with someone to make up the difference with down payment? Many lenders don't want to be in a first position. If your seller will assume a second position (?), many lenders still don't want seconds.
Dan- my brother and I might be interested in partnering on this project. We invest in Phoenixville and are very familiar with the area and rental rates. We also have a contractor that we know and trust. Shoot me a message!