Im stuck i have a pretty hefty LOC nothing underwrites
The issue is find deals, but i also have to pay my LOC plus new mortgage so the number don't add up i keep going under water on the deals I underwrite. I pay the whole deal cash but i still have to pay like 16k month on interest for the LOC. So it takes my profit from the new building completely. IDK what to do can any one here give me a new strategy. Should i just wait it out for interest rates drop. I had found Property for 4 million bring in 420k gross NOI was 350k low expenses. The building made money but once i had to pay mortgage interest plus my interest on LOC i was just making it on 4 million dollar deal.
If the number don't close.
The buyer is not selling you need to offer less. Nobody will buy a building for 4M to lose every month.
Sellers are still with old prices, at today's cost of Money they need to go down on price. Rene is not going up 40% like the last two years or expecting double-digit appreciation in 2023??
Good Luck
Do you have the ability to raise rents and lift that NOI number? Having some kind of value add, or just buying something that has below market rent that can be raised, might give you enough of a return. Keep in mind that using HELOC money rather than cash is going to make the cash flow look worse, but you'd have zero of your own money in the deal.
Either you need to have larger cash down payment, lower sale price, or location with higher rents.