Multi-family That Needs Work
We're looking to buy a multi-family duplex for 65k. Comps in the area are around 100k, and this property needs some work. There's some water damage in the ceiling from a broken pipe, and it needs some updating. My question is, is it possible to get a conventional loan for a multi-family that needs a small rehab? Should we be checking out Hard Money lenders instead. Just curious, how you guys financed duplexs that need a bit of a rehab. Both our credit scores are 680 or higher.
For most lenders commercial loans begin with 5 units. In other words you can get a conventional loan for 1-4 unit properties. Just about any mortgage broker will have programs available. It just comes down to shopping around for the best terms for your needs.
Depending on how it might appraise, you might need to go to the neighboorhood S&L or community bank where they know the property. They would probably give you Prime + a bit if your credit is good & then you could rehabrefinance it. There are other ways too.but
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Jeffm,
Find a mortgage broker that specializes in mult-family/investment properties. They should be able to set you up with a program to finance 80-90% of the value of the property AFTER it's improved.
Chris