Navigating Private Money Repayment on 45K Property

[Hunter H.]

Hello,

I'm a noob looking for advice on structuring a deal with private money. I can acquire a property for 22K that has a current ARV of 45K. To my knowledge, this is just below the threshold for most banks to issue a mortgage/refinance. I have not spoken to a local bank/credit union yet.

Seller purchased for 26K in 2011 and had a bad experience renting (from my perspective due to operational inefficiencies). Minor cosmetic repairs are needed and estimated at 3K. Seller is looking for 22K to pay the remaining balance on the current mortgage. Seller is a family friend and simply wants out.

It would be ideal to receive a 22K bank loan but I know that is very low for traditional mortgage lending. I have access to private money (friends/family) and am considering paying the 3K rehab out of pocket.

Do you have any advice on repaying a short-term private money loan, assuming a traditional refinance isn't likely? 

Thanks,

Hunter