How to build a real estate empire in high Crime area
Trying to figure out the best way to close this deal. It's a package of smaller mixed use properties in Newburgh NY. 8 buildings mostly brick 36 units. The gross income is close to 300k expenses 100k. Purchase price 1.375m I have 729k to put down. My credit is good and I have experience in property management. Credit is 754. Net worth is greater then the loan.
Here is the problem. One of the buildings is an SRO/ rooming house. It's 14 rooms and generates 7k a month. That and a few of the residents are working the street outside the building. Building is in a drug infested neighborhood and to me looks to be the worst building on the block. This building is part of a 3 building parcel so I need to include it in the package to get keep the LTV good.
Another problem is that one of the other mixed use buildings is an illegal SRO/ rooming house. That one is supposed to be a 2 family above a store but instead is 11 rooms generating 5k a month.
I've showed it to two hard money lenders and one bank and all have said no way.