Ok, so I have come across an issue that is most likely not unique but something that I am not sure what to do.

There is multifamily unit for sales in a smaller town fairly close to me that has really good potential. Currently the rents are 10-15% below where they could be and it stands at 30% vacancy but only because those units are being rehabbed. Historically it has been at near 100% occupancy for the last ten years.

Here are the problems. It is an 18 unit complex and has been run by an individual for quite some time and the bookwork has been less than stellar. There are no real financials to speak of other than an excel spread sheet which, as we all know, cannot be reliable without further backing. It is almost impossible to get an appraisal on it because it’s the only one in the town and there are no comparable. Plus, even if I did bring an appraiser from a bigger city it would cost $3200 for a restricted report and $6,000 for an unrestricted report that a bank would accept. The seller will not purchase one nor help to get one in any way (most likely because he knows it would hurt his cause not help it) therefore the only and best way to get this done is through the income approach. Having done my due diligence on the property I have almost doubled the owners “supposed” operating costs but even then the unit has really good potential for a nice return.

My usual private money investors are leery because they have nothing to compare it to and because it is a little high for their budgets. The property itself can most likely be purchased around the $650-$700k range.

Is there any private money lender or investor willing to partner on a multifamily like this who is confident enough in there due diligence and ability to properly forecast returns without the aide of outside financials and reports? Any leads or suggestions would be helpful, thanks.