MHP Financing with Hard Money Loan?
How would you finance this value add MHP? Here are the details:
-28 lots currently rented, 32 more are cleared with utilities run
-of the 28, 15 are park owned homes, 13 are lot rent only
- The plan is to get the other 32 upgraded with electric and ready to rent over the next 12-24 months, increasing NOI by 8000/month
- so far, (commercial) financing is available with only a 3 or 5 year fixed period. Once the upgrades are completed, and lots rented, terms would be significantly better (would meet criteria for a Fannie backed loan program).
- would you look for a HML for 2 years? Take the bank financing offered and refi after 3 -5 years?. Do HML lenders lend on mobile home parks? What kind of leverage is typical?
Looking for any advice you can offer, TIA!