Financing a HUD contracted apartment
I asked this question on multi family forum but didn’t get a response thought I would try over here.
There is a great deal on a 20 unit apartment with a catch it is contracted with HUD. In order to keep this sweet deal rolling HUD will need to re-up the contract next year (there is 5 yr extensions apparently) if they don't the rents would obviously decrease quite a bit. I have two questions;
1. Is there a realistic chance of obtaining bank financing? Or is this a cash deal with the hopes of a bank refinancing it when there is a future contract with HUD?
2. Is the extension of a contract with HUD fairly certain or is this a pretty risky proposition? It seems pretty certain to me but I don't have any experience here.
Thank you for the help,