Hello BP, I just found an amazing Triplex and I ran it through the BP calculator through several scenarios/outcomes and on the low side, the Triplex will provide a 27% Cash on Cash ROI, 10% Pro Forma Cap Rate and a 11.04% Purchase Cap Rate. I have already used my VA loan but dont have enough capital saved to throw down a 20% down payment on a conventional loan. The triplex needs some repairs, but i dont believe it is enough to BRRRR it. What are my options for financing? I know there is the option of bringing in partners, but what other low or no money down options would be good for this deal?
Hello @Account Closed,
It looks like you're going to need an equity partner. If I were in your shoes, I would underwrite the property in order to show investors what the upside would be. Maybe look for a hard money or private lender and BRRRR it, or maybe even house-hack it. You can get better financing with the house-hacking option. Look into a 203K loan, where you can bundle the purchase and repairs into 1 loan. Hope this helps,
Ask the seller to owner finance with 5% down for 2 years or something like that.
Master lease the property for $1200 per month while you save up for down payment.
Borrow against your 401k at work, you should be able to get 50k or 50% whichever is less.
Ask some family members or close friends if they have an old 401k that could be rolled over to a self directed IRA and then borrow it from them.
Personally I use the last one quite frequently.