I'm about to close on a 4 unit. It's built on a large double lot in a prime location for 1 br/studio loft apartments. I plan to added another 5-6 units on the back 2/3 of the property (currently undeveloped).
I'm looking for suggestions on where to look for financing. Commercial loan? Private money? I figure I can always refinance to package the entire property under a single mortgage and pay off the presumably higher interest construction/private money loan with the equity.
What are the loan amounts? Closing loan amount and projected project cost for additions? Do you have the values, LTV's of current units and projected units?
I'm closing on the property with a $200K loan. I will be occupying one of the units for the first year (FHA loan). Monthly rent roll is ~$2300. I'm talking with a few builders now, but I'm planning on ~$100-150K budget for adding the additional units. Similar 1 br units in the area go for $650-700/month.
The completed project will bring in $6200/month in gross rents.