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Updated over 6 years ago on . Most recent reply

User Stats

54
Posts
10
Votes
Jef A.
  • Investor
  • Atlanta, GA
10
Votes |
54
Posts

How do i fund this purchase?

Jef A.
  • Investor
  • Atlanta, GA
Posted

I found a property i want to buy but it seems my conventional loan lender may have concerns about the repairs the house needs. The neighborhood is 300K+ and the property was built in 1987 and is listed for 265k but after talking with the seller i can negotiate down from here because it does need some repairs. I estimate some electrical work, kitchen rehab, painting, & flooring. My lender seems to be concerned about the repair work. Is there a different type of loan that i can get that is more comfortable with a property that does need repairs? I have great credit(815) and money for the down payment and repairs so i dont see what the issue is....i dont want this deal to slip by so i need some advice on how to structure the deal. 

Most Popular Reply

User Stats

25
Posts
65
Votes
Nathan DeJonge
  • Rental Property Investor
  • Ypsilanti, MI
65
Votes |
25
Posts
Nathan DeJonge
  • Rental Property Investor
  • Ypsilanti, MI
Replied

Not sure what type of home it is or if it is local to you. But if you don't mind moving in then you can do a 203k and house hack it as a live-in flip. That way you can move out and rent it after a year. Or you can sell it down the road (after 2+ years) and pay zero capital gain tax. 

If you can't swing moving in then I would look to get private money for the renovations. Listen to Bigger Pockets Podcast Episode 289 for some tips on that.

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