@Scott80
We were just really lucky to buy the Beachside Cottages at a good price. You can see them as Beachside SPA Cottage and Beachside JUNGLE Cottage.
After we renovated them, the bank valued the cottages at double what we had paid for them on a bank foreclosure purchase and we were able to get a valuation for the mortgage based on the increase in the cottages value and the value of the apartment land. We bought the apartments for the cost of the land only as the building had been declared uninhabitable and was slated for demolition.
We actually did not have to put any money down except a $5000 deposit at the time of purchase. People ask us how we can sleep at night in this position and my partner always answers that he sleeps like a baby but he wonders how the banker has any peace of mind at all!!
We had to do 7 months of renovations as it still had the original bathrooms and some kitchens that had been put in around the 1950's. I wish we could have kept the old bathrooms - they were something else! You kind of realise the scope of the project when you make a shopping list and find you need 46 bedside tables!! That was a wake up call. And hiding 25 airconditioning units was a big brain tease as well.
It's pretty fun if you like high risk stakes - not always my cup of tea... You need to have nerves of steel and a good business plan as here they are allowed to factor in potential income into the loan. You never know unless you ask. Find a good business banker and ask him to help you draw up a 5 year plan. Some banks have financial advisers that they will let you speak with for free or a nominal fee. I think we are really an exception to the rule but you never know. I certainly hope it works out for you! Lisa