Figuring out a way to finance a HUD duplex

[Jake Recz]

Hello everybody! It sure has been a while since I have visited the BP forum. 

I went to look at a duplex today. Well... A triplex actually. It's a triplex converted into a duplex, for some odd reason. The intention would be to turn it back into a triplex. The property is in a flood zone. Flood Insurance would run about $2500/ year. After running all the numbers(worst case scenario), this property could NET $1,400/ month fully rented! It does need some work. I can do all of the work myself for a grand total of $5,000 in materials. With a $125,000 price tag, its a steal. Now the issue is, how do I finance this thing? The bank only wants to do 203k or cash deal. Now I sure don't have $125,000 sitting around burning a hole in my pocket... I applied for a HELOC on my primary property thats fully paid off. I'm keeping my fingers crossed. Still, I need a back up plan if that HELOC does't go through. Any suggestions? A long term private money loan would be a God send but I don't even know if thats possible. What would you recommend? Please point me in the right direction. Cash is short at the moment. This deal is so good though that I can't just give up on it.

I'm putting in an offer today. I already know they will ask for a POF letter. I'll get one, somehow. That will lock me in and give me time to figure out how to actually get the cash. It's bank owned so I already know that it's gonna take a little while before the wheels start turning and the bank gets into the mood to close this thing. SO, what would you do?