Buying & Selling Real Estate
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback
Updated over 4 years ago,
Can you do BRRRR without 100% down?
I found a property on the MLS that I toured with an agent and want to make an offer on. It is a 1500 sqft 2 unit both 2 bed 1 bath. It needs some work mainly a septic system and then mostly other light cosmetic work. It also has a large storage space that is big enough to be made into a studio. I think with the new septic, light cosmetic work, and adding the studio it could be a great investment. My issue is I only have enough to pay for about half the value in cash. The property is eligible for traditional financing if a new septic system is included in the loan.
What would be the best way to finance this if I am planning on pulling money out of it once all the work is complete? If I go with traditional financing could I still refinance it and be able to pull money out (not expecting to get all of the capital back out but some would be nice) when if it appraises for more? Would it be better to find alternative financing through a hard money lender?
Another avenue I was thinking about was to go straight to the owner and inquire about a seller finance deal, That way I could still be able to refinance out of that to a bank loan. I don't want to step around my agent and would still pay them for their work. Is this an option for a property on the MLS and how could I go about doing this?
If you made it this far thank you for reading. An advice is much appreciated.