Possibel Foreclosure & Rehab

[Stephen Zipp]

Found a foreclosure that I think I might be able to work into a great deal. How does this sound: Cost of duplex $30,000. Loan for $70,000, so $40,000 in rehab. I believe the house would be valued at $100,000 to $120,000 then. 

The issues: I am new to the game and worry. What I am worrying about, I do not know. What am I missing?

Next question: How long before I can tap the equity if I were to go through with this?

[Dave S.]

Stephen Zipp You mentioned a loan of $70k. Most likely than not you weren't be able to get a standard loan for a house that would require $40k of rehab. Don't forget you will need to put down at least 20-25% depending on the loan you get.

Just ensure you did your arv numbers right and stay on budget (ensure you have a contingency or buffer in Reno costs).

You can cash out refi 6 to 12 months after your start Reno. Sometimes sooner. Depends on the bank.