We are evaluating 4-unit building in Auburn, CA. The property is in pretty rough shape so we're planning on renovating before renting. My investing partner is a GC. This is our first investment together so we're exploring financing options.
Wondering if anyone has trusted contacts in private lending/hard money who are able to fund ~$400k in acquisition cost and ~$250-300k in repairs? We anticipate a post renovation value of ~$750-800k. Market 1bd rents are about $1500-$2000.
Ideally, we would have 24 months to get thru plans/engineering/permits/rennovation. Also, wondering if folks lend with the ability to only pay interest on the "drawn" funds during each payment to contractors? It would be a shame to pay interest on the entire amount, if only part of funds are deployed.
Thanks in advance for any tips on things we should look out for in loan terms, refinancing, etc!