Zero Out Of Pocket

[Shawn Casinader]

I found a duplex and on Zillow it is valued at $550K. One unit needs a lot of works I am guessing arouns $50K. I think I can purchase the property between $350K-$375K. Would I want to arrange to do the rehab work before we close so the property appraises at the ARV value? Could I get cash out at closing to cover the rehab or up to 80% for the ARV?

Thank you

[Ash Hegde]

You should not do any rehab before you close on the unit and actually own it. 

If this will be a primary residence/house hack you'll want to look into a rehab loan such as FHA 203k.

If this is an investment only property it's a two loan process, hard money to fund the purchase and rehab, then DSCR or conventional refinance to take cash out and pay back the hard money loan.