Is this deal for an 8-plex a good one?
I have a 8-plex under contract For $60k, the estimated rehab will be another $40k
The way the contract is currently written - is for $40k down and the seller will carry $20k over 3 years allowing interest only payments for 3 years with a balloon.
The 8-Plex property has 2 units occupied in month to month leases for $375. (I think updated we can get at least $400-$425 once all updates have been completed)
I have a personal HELOC with about $60k in it to at least purchase the property.
I wanted to see what would be the best way to go about this purchase.
a) Go with the contact and wait the 6 months seasoning to refi one of my other investment homes to get the cash to Rehab the entire 8-plex at once?
b) Go with a hard money lender, for the purchase and the rehab and pay a lot higher monthly and hope they rent fast to refi and pay them off?
c) Go with the hard money lender for only the purchase, use the rest of my personal HELOC for the Rehab.
Is this a good deal?
Please - educate me on if this is a good deal or not.
How does the commercial taxes factor in?
Thank you for your time!