Buying distressed property but seller owes bank!!!!!

[Leeana Cordero]

Need some advice. I am looking to buy distressed property(3 BDRM, 2 BTHRM 1.4Ksqft), it was listed as 60K owner is willing to take 45-48K because he said he owes the bank. I was going to put down $1,500, try to use the BRRRR method and then with the refi just pay him the 44-47K left on the house. (Is this even do-able?) Also, for rehab use a hard money lender and pay them out with refi as well. Need some advice I've never done the BRRRR method. I do have other properties in the area and I am kind of familiar with the market here in VA. If paying out the seller with refi money should I use a contract ? If so, examples please.

[Marcus Auerbach]

You will have to come up with the money for the purchase and rehab up front. A HML will eveluate the deal and if the ARV is high enough fund you with a certain downpayment - often 10-20%.

So if you buy the house for 45k and rehab it for 25k it will need to appraise for about 100k for the BRRRR to work. Don't forget your holding cost and HM fees!