Fix & Rent Loan Brownstone

[M. Michele Hamer]

Hello,

I have been trying to find a good lender for a relative who needs work done on a 3unit brownstone in Brooklyn, NY. The property is owned free and clear but it needs about $250K ($90K of which is for the facade alone) according to the contractor who has been doing work on it. Credit is not a problem, but putting money down is since she has been paying for repairs out of pocket until now. 
What is the probability of getting a loan approval for a project like this? ARV is in the $1.7M range (according to Zillow/ trulia/ Redfin), but an appraisal hasn't been done in a while.

[Jonathan Taylor]

@M. Michele Hamer If the property is free and clear and you need barely 15% of the value (1.7m/250k = 15% LTV), bridge lenders would be a smart option. These lenders use the as-is value of the property for a short term, 12-24 months, and the cash out proceeds to cover loan costs. If you plan on keeping the property, you can refinance into a low leverage 30 year fixed DSCR loan to repay the bridge loan.

If you plan to sell the property, then the sale will repay the bridge loan. This is easy to do since your leverage is so low.