I'm in the process of inheriting a 12 suite bldg from grandparent. The bldg needs almost 200k in repairs but I know the monthly gross can be at least 8k a month. Not including a restaurant storefront on the property. I'm curious as to how, where, or what type of loan or grant to get the bldg renovated. I was leaning towards renting to veterans or some type of transitional house in the end. The property is paid for with no liens, but my current income isnt high.

@Ray Day you could possibly look at doing a HELOC if you have equity in your home. Or apply for construction loans or hard money loans to rehab ,and then refinance the unit out to a 30 year. The question to ask is this unit gonna be worth more than what you put into it for the equity when you get done . Best a luck

Originally posted by @Ray Day :

I'm in the process of inheriting a 12 suite bldg from grandparent. The bldg needs almost 200k in repairs but I know the monthly gross can be at least 8k a month. Not including a restaurant storefront on the property. I'm curious as to how, where, or what type of loan or grant to get the bldg renovated. I was leaning towards renting to veterans or some type of transitional house in the end. The property is paid for with no liens, but my current income isnt high.

 If the property is free and clear you should be able to get a loan from the bank secured by the property depending on the overall value.

@Greg Dickerson brings up the important point. What doe’s existing financing look like?

@Ray Day If there is sufficient income to cover expenses you could try to limp along initially, create a package of financials for a local bank, or consider selling and use the proceeds to have a downpayment for a better cash flowing asset. Most markets are hot for MF currently; maybe worthwhile looking into it.

@Ray Day

Hi, something that could be helpful is to partner with someone who has experience with renovating apartments and rental units. That partner could fund all of the repairs until time of refinancing for reimbursement or to offer to buy the building from you.

Let me know if this is something you’re interested in.