I'm in the final stages of assembling several HELOCs to total 550k to buy an OOC multifamily. I'll be looking for an under maintained property to reposition.
I know, I need to split the money into the 3 piles.
1. Purchase
2. Rehab
3. Reserves
The reserves are mostly designated for vacancy period during the repositioning.
I'm in the final stages of assembling several HELOCs to total 550k to buy an OOC multifamily. I'll be looking for an under maintained property to reposition.
I know, I need to split the money into the 3 piles.
1. Purchase
2. Rehab
3. Reserves
The reserves are mostly designated for vacancy period during the repositioning.
How would you split the money?
P.S. it is my first foray into multifamily.
I would try and leverage $500,000 and see if you can get something for $1.2-1.5M
Depends on what type of property and what condition it is at. If your doing a gut rehab then I would only keep a small reserve like 5% back because you already did all the work..