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.
Join the Largest Real Estate Investing Community
Basic membership is free, forever.