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
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?
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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