Bridge loans to split a portfolio of SFHs

[Don Petrash]

Portfolio question:

How can I acquire a portfolio (5+ SFHs) and then refi into individual, conventional loans? The commercial loan (5.5%, 20 yrs) will be significantly less cash flow than conventional. Are lenders open to a commercial loan with a 6-12 month balloon, for quick refi?

Details:

Portfolio includes 5 SFHs and both sides of a duplex

All numbers are monthly

$4495 total rents

$449.5 mgmt fee

$193 tax (monthly)

$235 insurance (monthly)

Properties are in Alabama. All units occupied for long term; the mgmt company will remain for the duration of each lease.

Asking price is $499k. I haven’t decided on an initial offer yet. I have a partner in town who can have their name on several of the properties, so we can have up to 8 conventional mortgages.

A drive-by of all the homes show they are in reasonable shape for the exterior; no obvious roof damage, reasonable curb appeal. Probably paint and carpet on the inside of most units, planning for significant capex on 1-2 (HVAC, plumbing, misc)

Open to all thoughts and comments.