Financing on a 6 unit in NYC

3 Replies

Hi All,  I have an opportunity on an off-market 6 family in Astoria, NY.  Here are the numbers:

6 Units Rent Stabilized Building, Semi-Detached Solid Brick

3 Car Garages And Wide Driveway.

Total Income : $132,600 Total Expenses: $28,120 Net Income: $104,480.

The building can be delivered with 3 units vacant.

5 X 2 bedrooms

1x1 bedroom

Delivered with 3 units vacant that could turn higher rents with renovating. 

Asking $2.5m for the building. 

I'm partnered with an electrician and carpenter on the project

I have about $300k cash for the deal, so I started looking at hard money lenders. Any ideas for creative financing for a buy and hold?

Thanks!

Ben, when you include closing costs you are looking to find around 90% LTV. It is difficult to find HML at 90% LTV at all, and those who will, generally expect it to come out to 65-70% ARV, and charge much higher rates. What is the expected ARV once you finish the rehab?

If you can refi after rehab and rented-out, with a conventional loan after 3-6 months, then the HML may be worth it. Otherwise, the numbers just don't make sense. Check out the new rehab calculator.

@Yonah Weiss the ARV would be around $2.75m I'm estimating based on similar buildings in the area. My other concern is that it's a rent-stabilized building with only 3 units delivered vacant.

Finding 90% LTV is difficult, but the deal makes sense. Private money could be used on the purchase, and then refinance when the property is rehabbed and stabilized.

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