Seller Finance vs Homestyle?
Hi BP Fam,
I have a question for a property that I'm looking to purchase. I have an off market deal in Baltimore that I'm looking to purchase. Right now, it's a framed shell that needs plumbing, electric, the works. ARV - $285,000 (super conservative, and that's in normal market conditions). I want maximum equity on it, so here's my question as follows!
A lender recommended I buy this using a Homestyle renovation loan. We plan to live in it and rent our current house, so I could put just 5% down. Has anyone used this type of loan before and can speak to it?
Another option I'm considering is asking if they would offer seller financing, and we could pay for the renovations ourselves. I would then refinance after the work is completed. This is uncharted territory for me, so if I'm missing anything, let me know!
So, all things considered, would it be easier to just use the Homestyle loan and refinance later, or should I go with seller financing and take more control of the rehab process?
Grace and peace,
Brady