Anyone have a Hard Money lender for a property in Memphis?
Multi-Family (8-Plex) need money for Purchase and rehab for a year.
Please send me any referrals you think would help!
Hard money for multi family in Memphis could be difficult. Possibly in an excellent part of town with a lot of your skin in the game but Memphis is tough multi family territory especially in sub " a " properties. There are so many single family opportunities for tenants that the tenant pool is marginal. Also the city / county property tax rates on multi family are restrictive to cash flow.
Thank you for your input!
The cash flow is great on this deal - also half the unit are already rented.
Why be cryptic about the numbers?
PP, asset value, rehab $ needed, skin and experience you are bringing @Anthony White ?
Sorry - here you go!
Description: 8 Unit (2Bd 1Ba each unit)
Area: .55 Acres
Purchase Price: $60,000Taxes: $2,700
Insurance: $4,200 yr
Est. Repairs (Scope in Hand): $40,000 (New Flooring, New Painting, Tankless Water Heaters, Toilets, Tiling, Tubs, Sinks, Ceiling Fans, Update Exterior, Window AC/Heaters)
Est. ARV: $150,000+
Rent: 2 Occupied - Units 1 - 4 currently at $375/mo ($450-$500 after Rehab)
Rent-o-meter at $500 https://www.rentometer.com/results/hBXuzdupU3I
I hate pouring water on a nice fire but my advise is to buy a couple nice single family homes in a decent area. With single family you can get decent financing and a much more stable tenant pool.
I have skin in the game in Memphis and my concern is that you are just plain paying too much for the property and investing way to much in the rehab. It's hard for me to be so negative but realistically a 15k per door multi in Memphis will be lucky to rent for 400 gross/unit. After property management, city taxes, county taxes, repairs, capex, vacancy, insurance and carrying costs of non conventional money you will have nothing left but a property with limited exit options.
There is a reason these properties are for sale, they just don't pencil, this isn't east or west coast investing Anthony, this is Memphis.
One more rant, you never mentioned management but please don't have the illusion that you are going to manage multi family in Memphis from California. That being said make sure you have a good manager because many won't take on 2/1 multi in your value range.
I hate being so negative I'm just trying to make sure your really thinking this through