Difference between Hard and Private Money for rehab on existing distressed rental?

[Richard Gettemy]

Long story short, my father passed away, I am helping my elderly mother with figuring out her best exit strategy

Property was purchased in 07, completely rehabbed in 2019 and will be vacant during construction due to an eviction mediation agreement.

Current Payoff is $179k 

ARV is $315,

Rehab is about $26k, 30-45 day time rehab time due to tenant neglect and damage

Exit strategy is to list for sale at $315k via the MLS (I have a broker)

She is Currently behind 3 payments at $1297 each as well as looking to finance the carrying costs during rehab until sold. 640 credit score looking to secure which ever is better for this situation, hard or private money.

I've been in investment real estate for almost 20 years, started out as a flipper, with extensive construction knowledge and moved my way up to wholesaler, I personally can't fund this at this time and I would appreciate and love suggestions

[Caroline Gerardo]

If she DOES NOT live in it there are a number of options, all are expensive. You mention "tenant neglect" so I assume it was rented.

Where is it located? SFR or condo? HOA?

She will need the now 4 payments plus tax and insurance arrears so $5200 plus $26000 cash back plus all the title escrow settlement appraisal another $4000 plus points with that score maybe 2-3 points There is room to do this BUT is that the best choice for Mom? Has she been filing IRS taxes on this rental and what is her tax situation when she sells? Get a CPA to look at what she paid, depreciated, improvements... 

If you sell for $295000 today as is without doing anything but finding cash buyer is that a better choice for Mom? No work, no stress, no more servicing bank calls? 

Ask the servicer for a modification package tonight in writing. see my DM 

Do you have the statement and a verbal payoff?

What are the comparable sales in past 3 months with a loan?