How Do I Get 100% Financing On This?
This is a 32 unit apt. building. Seller needs 500k plus all closing costs paid. He has a note of about $3600 a month with a pay-off of around $390,000. 16 one bedrooms and 16 two bedrooms. all units are full. Annual operating costs are around $97,200 (including debt service), and annual income is around $138,000. expenses accounts for utilities, insurance, taxes, debt service, and misc. repairs and vacancy. this should be somewhere around a $3400 monthly pos. cash flow. there is also room to raise rents by $50 per unit as is. The financing happens to be through our bank, who we are on good terms with. If anyone remembers I posted a few days ago, and we just got the $50k line of credit earlier in the week through a different bank. We are inexperienced, but motivated, and any helpful advice would be appreciated.
if I am reading it right I think the cap rate is higher than 8 because the 97,200 includes the 3600 monthly payment so deduct the 43,200 a year for debt service
I come out with a 11% cap rate I know I didnt answer your question but I think I disproved the reply above me and I think it is posible to do, my lender will lend on investment property up to 100% if you deposit 6 months operating expenses into an account to be used if you default and you could borrow that from the 50k credit line, I know you could do it
Hi Robert,
There are lenders that will do 100% financing we just bought 5 mobile home parks in the Houston area and they funded us 100% the only catch is you must have at least 1.5 million verifiable in your bank account. The thing is though this lender will lend on just about anything. You do have to have a good credit scores business and personal. We use this lender on just about all of our deals but they fund 100%. We are also in the Lufkin area in fact we are in the process of buying a new office building in the downtown area by the courthouse. We have bought a real estate investment franchise and will be putting it in that building. Give us a shout and maybe we can help you out.