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Updated over 6 years ago on . Most recent reply
How do i fund this purchase?
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.
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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.