Seller Financing Deal..... Thoughts please

[Michael Dunn]

I'm considering using Seller Financing on a  property, due to  ...... The fact that It needs $35,000 of repairs  ( of which I do no have the cash to buy the Property outright AND pay for this amount in repair )    

So I am looking at Seller Financing ( if I can't find a Portfolio Lender to incorporate the costs for the Repairs into the Loan as a whole

The property(s) I am looking at, all are distressed and from what I can tell, have been sitting for a year or more.

If I can get these properties for $20,000 - $25,000 , I could afford that ( since I will be doing a Cash-Out refi on my primamry for around $25,000 ) BUT, if the bank would then only loan me 80% LTV on that $25,000 for the Repairs .... That would only give me $20,000 for the repairs, thus I'd be $15,000 short '

So this has lead me to look into Seller-Financing .

If I understand t correctly...... Say The seller is willing to sell me the Property for $30,000 , plus them knowing that $35,000 will also e needed to repair and renovate the property.  They would act as the Bank , and likely charge me 6% interest , 5% down payment and do this on say a 2 year basis.  By Which I would repair the property and Refinance it before the 2 years.

My Question is ..... How would I still get the needed $35,000 for the Repairs, if I was to do Seller-Financing ?  Given that coming up with this money is my biggest Hurdle .

If they were to agree to ell me the property for $35,000  ......  Could I borrow against that $35,000 ..... $35,000 ?

The ARV of the property is likely to come in around $110,000 and at a 80% LTV , that puts it at $88,000

With a $35,000 purchase price  +  $35,000 in repairs  +  $5,000  for TWO sets of Closing costs ...... I am staying Under the $88,000 for when I go to Refinance

Anyways, I'm trying to figure out what my options are to purchase this property , and need some advice / guidance on how to best secure the deal ...... Mainly coming up with the $35,000 for the repairs

Thanks so much