10-Unit First Deal - Can I Get Financing?

[Jeff Buchanan]

I've been looking at and analyzing deals for about 2 months now. I found a 10-unit property (efficiency units) that looks really good for a BRRRR. Total cost of purchase and rehab is estimated in the neighborhood of $500k. Having no experience in this arena and maybe $15k cash available, what sort of financing would be available to me? Is there a lender that would even consider it? I am going to be talking with a few banks to see what they say but figured I'd ask the pro's first!

I appreciate any advice you have to offer!

[Brandon Sturgill]

@Jeff Buchanan your available cash is low...its very unlikely that you will see a commercial loan originated for less than 20% down...and that's just the down payment..you still need to think about inspection, appraisal, insurance, closing costs, set asides...and repairs going in...If you're going into a $500k deal you should have $175k on hand to make the deal work...

Your alternatives are to raise private debt/equity, or structure a purchase money mortgage.

With $15k available you should be considering a 2-4 unit FHA owner-occupied property.