Looking for advice on a first deal mess.

[Darrell V.]

I’m just starting out and my first “deal” was unintentional and not an ideal situation. Long story as short as I can condense it. I acquired the family home due to a relative’s medical issue. The property was foreclosure. Worked with the lawyers and brought all payments current ($10k total with fees). Using my own real estate attorney we did a Subject To with a wrap around and I continue to make payments of $625/mo. The outstanding balance is ~$85k on a $104k refi loan, current value per Zillow in only $103K.                                 

The property needs extensive repairs in order to rent. It's in a historic district half a mile from the local college. Selling is not an option I would consider at this point. It was originally a 2-family converted to SFH still zoned as a duplex. ARV would be 140k-150k with minor rehab, more if converted back into 2 units.

Seeking advice. I have $30k saved that I can put in rehab. This would allow me rent it out as SFH although at the bottom end of market rent around $700. Would like thoughts on a hard money loan to pay off loan and fund a bigger rehab and refi out later?

Thanks in advance.