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Updated almost 2 years ago, 12/29/2022
loan options for a residential/commercial property to rehab/refi
Hi everyone, I'm reaching out to see what loan options there are for a commercial unit with single family residence on it. My plan is to buy, rehab and refi to pay back the loan with interest and sell my current house to move into this property. My current house sale would cover half of the initial loan of $325k (about $150-$160k which is pretty below appraised value) and the refi would cover the remaining 50% plus interest. The LTC would be around 35% considering the property doesn't need any major repairs. for a little background on myself, I own 3 income properties in an llc as well as my current house, they're all paid for except a heloc for 50k on one of them. I completed an extensive rehab my primary house last year, as well as rehabbing all 7 units on my other properties, so I have the experience it takes for this flip, just not the timeline for a traditional mortgage if I'd like to put in an offer. So I'm wondering if anyone thinks a private hard money loan is a logical way ( or even possible) to get funding for this project. Is this an attractive option for any investor? it seems pretty low risk with selling my primary house with the ability to borrow against another one of my properties if necessary, but I am relatively new to any lending outside of a bank. Any tips would be greately appreciated!
Brandon Fischer