Updated 2 days ago on . Most recent reply
Gap Funding for New Construction Duplex
I have full rehab experience that is currently serving as a LTR. I am investing in a new construction duplex opportunity that needs gap funding. Between purchasing land and plans out of pocket, I don't have enough for the liquidity requirement or cash to close.
The duplex will be a 2400 sq.ft total build. 1200/unit 3bed 2ba each. SFH new builds in area with those dimensions start 275k.
I'm purchasing land free and clear for 20k utilities, minimal clearing needed, soil test ok, city hall ok'd zoning for duplex.
Construction costs ~ 330k
ABV ~ 510k This will be 2nd new construction duplex within a mile but the only one with 3bed 2bath/unit. There are about 4 new construction SFH in .5 mile radius.
Rental income - 1,400-1,700/month rent for 3bed new construction in area.
Lenders are offering 10% interest, 80-85%LTC, ~77k in liquidity required. Interest payment about 2400/month. 6-8 month build plan.
An opportunity for a capital partner or lender for this project.