What to do when I need a mortgage

[Mariel DeVito]

Hi BP friends - I have the golden opportunity to acquire a property through seller financing.  Unfortunately the place requires some serious rehab but the owner owns it free and clear.  So, he will be carrying the note after we close.  I was hoping to go to a bank or some financial institution to get a mortgage on the home, after rehab, in order to pay off the seller.  Is that possible or would I need to make him whole to give me back the note to do so?  The seller financing is ridiculous but I went with it as I am confident it is still a deal.  Sale price is $85K. Planned rehab cost $40K. Total $125K but potential market value of low $200k and possibly mid $200k if the market continues its upward trend in the area.  My plan though is to rehab and hold as I am considering it as a potential retirement home.  Thoughts?