Wholesaler/ Buy and Hold Investor · Sherwood, AR · Member since 2015 · 83 posts · 18 votes
Hello BP world!
I have a 5-plex under contract at
Judsonia, AR. It neighbors a nursing home in a B neighborhood. It has 2/1(2) and 3/1(3) all situated under a 2 year old roof that cost the seller $20k. All units have washer/dryer connections and includes all appliances. 3 of the 5 units are rented out. 2 tenants have been there for over 7 years. I requested the seller not fill the units in order that I may do minor updating and seek higher rents. The seller hasn't raised the rents in 5 years because of wood paneling and what appears to be original vinyl on the concrete slab floor. The seller updated one 2/1 unit with tile flooring throughout that cost him $1100 total.
2 - 2/1 * 350 = 700
3 - 3/1 * 350 = 1050
Taxes 1680 annual (taxes likely to go up with new appraisal)
Insurance 1300 annual
County appraisal - $199k from 2011
New metal roof 2 yrs ago for 20k
Washer and dryer connections
Cash flows as is but 3-5k per unit in updating can bring $75-150+ per unit
My original intent was to wholesale this property. However, with due diligence, I'm wanting to keep these properties. Unfortunately, I won't qualify for a commercial loan for at least another 6-12 months. I'm working with a credit repair and business credit specialist. So, I am looking for interest only private financing for buy and hold with a cash out refi as the main exit strategy. Can anyone help me out? If not, I'm open to wholesale
Message me for a video of the vacant 2/1 and pictures of the vacant properties.
Wholesaler/ Buy and Hold Investor · Sherwood, AR · Member since 2015 · 83 posts · 18 votes
11y
To those who see unanswered ads such as this, don't get overly discouraged. Sometimes people reply privately. I'm working with a private lender and a partner to secure this property to keep instead of wholesaling. One replied privately and I reached out to the other. Keep ya head up!
Thanks Colleen. Welcome to BP. I see you've already been awarded the ADDICT label. The addiction keeps the deals coming. Losing focus causes the deals to cease. Don't lose focus of the bigger dream with the daily frustrations.
Hello again BP world
So, previously I reported that I found a private lender and a partner for this property. The lender is still in, but my partner decided to back out due to the purchase price and subsequent mortgage rate. The lender is in for a 1st lien mortgage for the purchase price at 10% with no payments and a balloon due in 12 months. I've had a few contractors bid on the work. It has dated wood paneling, vinyl flooring, and cabinets need an uplift. If the sheetrock is added, it'll be about $6-7k per unit to add up to $100 monthly income. I'll handle all the leg work. However, my research is making me question whether or not it needs to be sheetrocked aside from insurance purposes. Thanks for looking.