Creative Financing for Multi Family

2 Replies

Hey guys,

I see a few multi family units across a few states a cities that I could easily get to if need be. I want to go for it even if I fail and fail terribly I want to try and go for it. That being said I have a flip that Im currently working on. When I bought it I thought a had a strong indication of ARV and that was 240-260. I didn't check the market for about 4 months just focused on rehab (doing it myself while working full time) and multiple homes have sold in my zip code/ area for 300k+ with less sqft, baths, and or bedrooms. Long story short Im confident by looking at the comps that my home is 100% better than what's selling. I can get 290-320 all day for my home. I never knew or thought about the BRRRR method to real estates and I feel that I want to stop thinking small and shoot for something BIG (in my option {8+ unit multi}). My issue is making the money work. My thought was taking a second mortgage out on this home to accommodate as a down payment with roughly 150k equity thats a sizable down payment. Can anyone understand where im coming from and have any in put? I admit this is out my league so I humbly seeking help. Thank everyone for reading and their in put ahead of time.

Originally posted by @De'Anton Gipson :

Hey guys,

I see a few multi family units across a few states a cities that I could easily get to if need be. I want to go for it even if I fail and fail terribly I want to try and go for it. That being said I have a flip that Im currently working on. When I bought it I thought a had a strong indication of ARV and that was 240-260. I didn't check the market for about 4 months just focused on rehab (doing it myself while working full time) and multiple homes have sold in my zip code/ area for 300k+ with less sqft, baths, and or bedrooms. Long story short Im confident by looking at the comps that my home is 100% better than what's selling. I can get 290-320 all day for my home. I never knew or thought about the BRRRR method to real estates and I feel that I want to stop thinking small and shoot for something BIG (in my option {8+ unit multi}). My issue is making the money work. My thought was taking a second mortgage out on this home to accommodate as a down payment with roughly 150k equity thats a sizable down payment. Can anyone understand where im coming from and have any in put? I admit this is out my league so I humbly seeking help. Thank everyone for reading and their in put ahead of time.

Hey De'Anton

You're in a good position.  Sell the current house and reap the rewards of your hard work and then you'll have the money to move forward.  The less debt you have, the better off you'll be and if you hit a home run with this one, take the money and go to the next one.