Updated over 2 years ago on . Most recent reply
Partially Finished Townhome Foreclosure
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