All Forum Posts by: Alix Cassagnol

No partners available at this time, I did not want to use a hard money lender because I am dependent on the local municipality to issue a certificate of occupancy and that could take longer then usual due to covid and to have a loan with such high interest for more then a year would be no good. My score is 700. I was thinking of signing a separate promisary note with the seller, first year interest only.

I have been working on purchasing this property since October 2019, then covid happened so I waited to negotiate more and was able to bring it down additional 60k. So the purchase price is 700k. I finally found some private financing that will fund the deal however I have 125k for deposit and closing. I am short about 75k. Seller was willing to seller finance with 200k down at 5%. I was thinking to have the seller provide the 75k at closing and sign a promisary note. Once I spend 30k to get CO's and add additional storage  units to adjoing yard the value will be 1.1 million. What are your thoughts?

If i were you I would have to start by deciding if you will keep it long term.  Then makesure there is a market need for single bed units. Then do a cost analysis by getting a few construction estimates for the total conversion add the cost of appliances, and an extra 5 to 10 percent for unexpected cost, and the amount lost for the vaccany period. Last run your numbers at the rate after the conversion and compare the 2.  If this is a long term play it mostlikely will be worth it with appreciation and cashflow. Most importantly is there a need if not work on adding value other ways.