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Updated over 2 years ago on . Most recent reply

User Stats

6
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4
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Nico Ferreri
  • Dayton, OH
4
Votes |
6
Posts

How to find a lender for rehab costs only

Nico Ferreri
  • Dayton, OH
Posted

Hello BP Forum! 

Right next door to my childhood home in a suburb of Cleveland, Ohio, I have noticed that the property has been vacant for years. When there was someone living there when I was a kid, he took awful care of it. The inside may have animals (raccoons), and the whole thing probably needs to be gutted. When that man moved out, they redid the siding because the city forced them to. I am looking into contacting the landlord (who I believe is an older woman that is losing money by owning it) and want to see if I can get a look inside (possibly with an inspector?) to see what it looks like. I feel like with the condition of the house and getting this property off the owners hands, I might be able to get a really good deal ($15-30k Cash offer, maybe less). Since this would be my first investment, I have some questions and was looking for some help! 

1. If I'm paying for the house in cash, how would I go about getting a loan for rehab costs only? I gotta imagine this will be minimum 50k to complete. Are there different loan options to choose from? 

2. I feel like paying in cash would be preferred with this landlord since she's older and probably would like to get rid of it, but is looking into a traditional loan worth it if I can get the estimated rehab costs included? 

3. Is there anything else I should consider? (I'm sure there's something I'm missing!

BTW after rehabbing I'd like this property to be a LTR

Any advice would be greatly appreciated! 

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