Pre-Foreclosure - Seeking Guidance

[Adrian De Gortari]

My partner and I found a pre-foreclosure seller, who owes $133K on the property ($95K on mortgage, $25K on interest and the rest on fees). They need to pay off the loan by 8/22 or start accruing a $7.50 per diem thereafter, so we really want to help them get out now. Estimated ARV is $230K. We estimate rehab costs at approximately $50K. We have explored hard money loans for a BRRR or flip, but we can't seem to make the numbers add up. For a BRRR we end up leaving over $40K of our funds in the house and the flip only nets us $11K. We still think that there is an opportunity here, we are just not experienced enough to find the savings to make it work.

This is our first foray into real estate investing, so we were wondering if anyone who would be willing to look at our model and see if there is any upside or clever ideas on how to bring some of our costs down in order to make this work?  Figured it wouldn't hurt to ask.