Hi BP, Need some strategy advice!

[Bryan Pham]

Hi BP,

I am getting ready to purchase an out of state property and I am not too sure which is the best approach. My agent was able to locate a property in Houston, TX for 90k with an ARV of 145k but needs about 10k for repairs.

I am thinking about how to skin the cat and is open for advice, tips and suggestions. 

I want to do a conventional loan on the 90k with a standard 20% down payment. I am curious to know if it is better for me to purchase the property with full cash, fix it up and then refinance or should I proceed with the first part which is put down as little cash as possible (18k), fix it up (10k) = 28k and then do a new appraisal to 145k and then try the BURR strategy. Are there any limitations with what I am thinking? Is my strategy wrong? Please let me know, thank you BP!

[Tom Cooper]

@Bryan Pham, Being a local Houston investor, I have to say that deal sounds a bit on the "too good to be true" side if it was on the MLS. I've had several agents scouring MLS for months and haven't seen anything like that. If it was completely off the market, certainly realistic, but since you mentioned an agent found it, I would encourage you to re-check or have someone verify, especially the ARV and the rehab numbers. 10K doesn't buy you much in rehab - paint, flooring, maybe some fixtures, but depends on the size of house as well.