Multi-Housing Financing! Help! - Posted by Andrew
Posted by Andrew on January 12, 2004 at 17:40:52:
I need some suggestions on how to structure/finance a deal I was presented with. A local investor contacted me and said he is tired of “dealing with” the 10 rental houses he owns. These properties were handed down from his father and he does not have the patience or the know-how to work with them. All of them but one are currently rented out through section 8 with a GROSS annual income of about 65k-70k. He is asking 250k for all ten but said he is willing to work with the price (a little). He is also willing to carry back the financing on the 250k for 10yrs @ 7% WITH 20% DOWN. All of the properties TOGETHER have a FMV of between 300k-350k. Some are worth less that 30k and some are worth more.
I do not have the CASH for the down payment and am not sure which would be the best way to go about getting it. I’m obviously trying to keep my monthly payment down to maintain a good cash flow and I would rather go 30 yrs than 10 to help with this.
Should I work with hard money for the down payment?
Try and go through a conventional lender?
I have bought several rental properites in the past but never 10 @ one time!
How should I approach this deal?
I would appreciate any experienced feedback.