Current Auction Investment Opportunity

[Ronny Crawford]

Hello All,

I am new to this site, though I have been investing a bit longer.  I have found a property that I would like to purchase and hold as a rental, however this property is a Cash Only Auction.  I am need of a Hard Money Loan or other creative loan to purchase this property as most of my cash is tied up in my 3 other properties with the first available refi that makes since not available until October (6 month waiting period of last property loan)

Here are the quick specs:

For Auction this week - Starting bid allowed = $20,000.

I expect it to go for a minimum of $60,000 and maybe as high as $90,000. We have been by and walked the property twice and driven the area as well.

Here is what I'd like to do:

1. Purchase at Cash Only Auction for up to $70,000 price (hope to snag for under $60,000)

2. Renovation / Repair Costs (would do most myself)

$3000 - New AC unit

$3000 - New Appliances

$4000 - Landscaping, Carpet, Paint, Debris and Trash removal

$10000

3. All in Max cost of $80,000

4. ARV of $110,000 conservatively - last sold for $114,800 in 2009

5. We want to buy and hold this property as a rental

6. Once rented, I want to put under mortgage and leave 20% in.  I would use the 80% cashed out of mortgage to repay the original loan plus interest and fees. 

Any advise on how to go about this property?