BRRRR Question

[Samantha Klein]

My contractor recently told me his parents filed bankruptcy and his dad owned a duplex in a nearby town, he said the trustee did not want the property and was trying to give it back to his dad, it has 30k lien on it from a bank and 8k in tax liens. I spoke with the lawyer for the case and he said I could probably buy the property for 20k, it needs roughly only 10k in work. It has a two car garage and both units are 2/1. The ARV is probably 65-70k. If I got it for 20 and put 10k in, could I pull out in a refiance much more than I have into the property?

[Jeremy S.]

A lender could best answer your question. It would depend on your personal DTI and there may be a seasoning period depending on the type of loan you intend to use.. If you could refi at 75% LTV you could borrow $45k if it appraises for $60k