Scenario breakdown of 6 unit property

[Sachin Bhat]

So I have this 6 unit property under contract that needs about 40k-50k in repairs.

Purchase price $89900

Total Rents after repairs $3400

This is in C class neighborhood

My question for seasoned investors on BP is how would you finance this deal and

What would be your strategy?

I would like to use leverage as much as possible.

I called couple of hard money lenders but they don’t finance if the property price comes under 35k. Is there any hope to get this deal done without paying all cash for it? Thanks in advance.

[Jaysen Medhurst]

@Sachin Bhat, one possible idea: purchase and reno with cash. Talk with a local lender about establishing a LOC (using the property as collateral, if necessary). Delay finance after a year, so you're only hit with 1 set of closing costs and can use the LOC in the meantime, if any deals come your way.