Help On A Possible Deal
I have located a possible deal almost by accident. I was out looking at my brother's new property (piece of junk needing major rehab) and noticed another, nicer place for sale. That seller it turns out is not flexible, but the agent has another place about 2 miles away that is very flexible. The house is paid for and is part of an estate. The executor just wants to get rid of it. The area is picking up steam with investors and the nearby homes have been selling for $58-59,000 for rehabs. The appraised as is value of the one I'm looking at is $80k. Homes that have been maintained are going for $100-120K. I'd like to put down as little as possible. It probably needs $5- 8k of work depending on how fancy I want to get. My plan is to rent it out, possibly a lease purchase. Rents are going anywhere from $650 to $900. I have been playing around with a number of financing options, but I'd like to get more feedback.
How much is he seeling it for? Is the ARV 100-120K?
If you can get within the LTV % you can get a hard money loan to buy and rehab, then refinance and rent it out. As long as it's below retail shouldnt' be a problem with refinancing it after the rehab. Also depending on your credit.
It can be done with NO money out of pocket.
JB
[addsig]
The RE agent keeps stressing to me that they're flexible on price, so I'm not going to pay more than $60k. I don't know what the ARV is going to be. I just looked at it today. Also the owner may be willing to throw in an allowance for fix-up. Should I try to get that or would it be best to get a hard money loan to do the rehab?[ Edited by ATLdog on Date 03/20/2004 ]