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When to Use Bridge Financing for Multifamily Real Estate
Question: I own 11 single family rental properties. I just found a 12 unit in Ohio that I would like to purchase. The purchase price is $750,000. It has 6 units occupied and the property needs a new roof and some interior improvements throughout.
My rehab budget is about $175k. The rents could be pushed up about $200 dollars per unit after renovations. What options would work for this one?
[00:35] What options would work for multifamily property?
[00:46] Using a bridge loan for 12, 24 or 36 month-term
[00:50] What will you get when doing a bridge financing?
[01:07] How much total product finding of total project costs will you get with a bridge loan?
[01:18] Do a bridge loan and get the property up or raise rents
[01:45] Doing an appraisal when you are all in and stabilized
[02:03] Refinancing into a long term debt when the property is running at its optimum
[02:21] Requirements of Fannie and Freddie