I'm looking at a property right now that is multi family and has a significant value add potential. However, the current numbers show it's a dog.
I'm fairly confident I can get the seller to let me manage it for a few months and be flexible with the purchase situation. If I can manage it for a few months, I can fill the vacancies, and maybe increase rent a bit, or turn over a couple units at increased rents. I just need to buy some time.
My question is about financing it. Is there a way with multi family financing to get a carryback from a seller to eliminate my need for a down payment? OR if I got short term financing for 6 months to increase income/decrease expenses and get a better value which makes a refinance possible. I wouldn't need a down payment if the purchase price is less than the 75% LTV because it's a refinance. How can I make this work? What is your experience?
Here are the numbers.
List Price 250k
Current NOI 3,000
Potential NOI after some management changes 20,000
8 units current rent 400 (3 vacant)
market rent 500+
Empty basement with space for 2 or 3 more units.
I should add I'm not planning on paying List. Less than 200k likely. Still negotiating.
@Paul Gwilliam you might get better response in the multi-family forum here on Bigger Pockets. Try that forum with this same type of a post.
Maybe I might get a response over there... :) Thanks.