Off market lending, Conventional Bank loan or Hard Money?

[Adam Nesheim]

Hello all!

My wife and I are looking to purchase our first SFH in Billings, MT. We know the market pretty well, and know of a house that is not listed on the MLS. The owners of the house are looking to size up due to their large family of 6. Some context is the family of 6 is living in a 3 bed 1 bath house. They are looking to sell and buy a larger house. My wife and I looked at the house, has great bones, just need some cosmetic work along with a full bath remodel. I have experience remodeling homes as that is my W2 job so I would be doing the remodel myself. The current owners of the property are selling significantly under price for homes in the area because they think that is what their house is worth in the condition it is in. My wife and I would be living in this house for about a year and then trying to sell or rent it out if the numbers make sense. My question is, would it be better to try and get a conventional mortgage for this house or try and get a hard money lender that has longer term limits such as a year so I can refinance after the remodel is completed? What are the pros and cons to a conventional loan this way?

Thanks!

[Nicholas L.]

@Adam Nesheim

need more info. what are the numbers? for hard money to work, you really have to be able to boost the ARV via the remodel. a modest increase won't cut it and the interest and points will kill you.