Investor · Cleveland, OH · Member since 2011 · 603 posts · 130 votes
5000 sq ft Century home converted to office space - currently broken up into 4-5 units in the heart of a trendy downtown area. I want to use part of it for my business and rent the rest.
Asking price - 275K
Rehab needed - 60-80K
After I do a cosmetic rehab and stabilize the building I plan to refinance. Will a bank lender allow the seller to finance part of the whole down payment and then provide a rehab loan on top of that? I have low 6 figure income, 27 single family homes, 70K cash reserves, strong credit and net worth.
As I do in single family - I want to use as little of my own cash as possible since it will be tied up for 1-2 years until I refinance.
The lender wont increase the rate for having a seller carry. Most will consider that as part of the down payment. For single family you only need 10% but for multi family and commercial 20-25% will be needed.
Set it up with a refi option though so you can get them out at a certain point say 3 or 5 years!