Ideas how to fund repairs on a undervalued properties
I recently closed a deal on 3 4-plexs that were valued between 160-180k for each building. We seller financed with 10% down @4.25% for 7 years for a selling price of 340k as is. 10 out of the 12 units are rented with mostly long term renters but all units are in rough shape. The rental market in my area is 97-98% occupancy. Currently we are paying out of cash reserves to rehab the empty units. We estimated about 60k needed to rehab all three properties. In this market what are the options to finance this work so it will not be stretched out over the span of 7 years? Also the rents are about 100 under market rent in the area due to the shape. we were able to get this property before it hit the market. Any suggestions would be greatly appreciated. Merry Christmas!