Possible 8 plex cash flowing decently.
HEY GUYS!!!! First off thank you for everyone who responds and chats I love talking and meeting new people!
This forum post is on an 8plex I am looking at that’s listed for 385,000 in Billing Montana. Not only is it and 8plex but it’s has an adjacent little house that comes with it. Imagine that either nightmare or easy land-lording hahaha. Either way it’s a good deal in all perspectives. I mean I did check it on the calculator 😂
Now my only concern is getting the funding for this venture. I am considering going and getting a private lender to lend the money for the rehab and purchase. It doesn’t need much for rehab, but I won’t know until I get a contractor thru it.
What is the best option in your professional opinions? Go with a bank loan or should I network and meet with local investors and get a private or hard money loan to do the Brrrr strategy on the property.
Most Popular Reply
@Jack McWatters the first thing to do is to make sure you have the resources to put down 20-25%. If you don't have that then you won't get far with this sized deal. If you don't have it, try to partner up with someone. On this sized deal, local banks typically give you the best financing. I have normally just used standard commercial loans for acquisition, but I am in the process of using a construction loan to do a BRRRR on a 22 unit using a local bank here in the Chicago area. To me that is the best of both worlds. I get the bridge financing setup that lets me carry the project with some interest only, and then I can refinance out and get all/most of my cash back on the other end.