Partially Finished Townhome Foreclosure

[Nick Reinhardt]

Looking for some input on a potential deal.

Property Description

8 townhomes consisting of 4-3/2’s and 4-2/2’s. The property is partially completed, exterior, windows, insulation, electrical, drywall are complete. All other interior work is not completed.

The property went into foreclosure and is currently owned by a local bank.

Numbers

Purchase Price - 150k/unit x 8 = 1.2

Est Remaining Construction - 50k x 8 = 400k. This is an estimate based on the information I currently have. I plan to walk the property in the next few days to get a more accurate estimate.

Total Cost - 1.6, this does not factor in closing or carrying costs as I don’t have that information at this time.

ARV - 250k/unit = 2m

Rents - Avg. 2,000/unit x 8 = $16,000/month

Questions:

- What type of lenders and loan products would work in this type of situation. What are the requirements (LTV, rate, terms,etc)

- What are the risks

- Does anyone have experience with this type of property