Help!!! 2 Houses, 1 Deal. Creative Solution?
Hello All,
I didn't know where to post this. Didn't really seem to fit in any of the Forums.
I have a newly completed 3/1 rehab (hard money loan) that I am waiting (still) on bank approval after desktop review to refinance and cash out of. Got 77K in it, ARV about $95K. Will cost about 3K to refi. The unit is Vacant but I have a Section 8 tenant with a 2 BR voucher I can approve tomorrow and put in starting next month, so I'm not worried about the mortgage getting paid if I decide to keep it. @$100/mo positive cash flow with a 2 BR voucher.
Lo and behold, Got a call from someone whose family has been in the area for years. Her father owns (free and clear) a 2/1,4 sided brick house in a little bit better neighborhood, probably needs about 10K of fixup to get it to ARV of 70K.
She likes my rehab and is thinking of getting her father to move. Mentioned a trade. What would be the best way to handle this so that I can generate as much profit as possible?
My hard money loan was 68900.00. The difference between 68900 and the 77000 is holding costs, finish repairs, etc. No matter what, this loan has to go away as part of the deal.
To rehash: I have 77K in my house, ARV of 95K. I am being offered a house with a ARV of 70K, needs about 10K in work. This would generate a much better cash flow on the 2 BR voucher.
What would a wise real estate investor do in a situation like this?
JohnCl
<IMG SRC="images/forum/smilies/icon_confused.gif"> [ Edited by JohnCl on Date 02/12/2004 ]
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