How to Fund a Multi-Family Unit that requires complete Rehab
I have an Opportunity to purchase 5 unit mult-family property in need of substantial rehab. Currently the property is empty. Comps show ARV of the 5-unit is $607,000. Monthly Revenue potential is $5200/mo. The purchase price is $350K and the rehab is estimated at $150K.
Seeking funding scenarios for up to four partners.
What are advantages/disadvantages of partners funding the purchase price of $350K with cash, and financing the rehab $150K?
What are Scenarios for payoff and return on investment for partners?
What is an attractive, reasonable deal for partners, i.e. rate of return on investment; Length of time for payout of capital investment?
I am Interested in what has worked for people who have put together these private deals or what would be incentive for a passive investor?
I've not put together a deal involving partners before and want to know creative solutions from this active and experienced audience.
THANK YOU!!!