Creative Deal - Finance Help Needed! (Primary)

[Neno D.]

Hey everyone,

I’ll keep it to the point! We need help strutting a deal. Any insight and/or recommendations would be so amazing! We are seasoned investors with a good size portfolio, just need help on this one…it’s in Maui. Primary residence. 

House listed at $2.0m
U/C at $1.7m
PP + rehab would give us a final loan amount around $2.1 ($400k rehab)
ARV ~$3.0m
we only have 250k cash for the deal. Does anyone know of a product, or a strategy to make this work? Or any lenders with a product that can make this work? 

[Caroline Gerardo]

Here is the problem with owner occupied remote: 1. the house has to be inhabitable soon after closing or you will get hit with housing costs X 2 which probably makes qualifying a problem. 2. most lenders want a letter from your employer stating you can work remote for 36 more months in the future (few employers are willing to promise this). 

You mention current rent rolls/income so this means you own other rental properties, yes? Most Jumbo lenders use IRS returns net number so be careful filing your 2023 tax return in not making the expenses total greater than 25% of income which will generally be the hit on gross rents. 

Permits in Maui take 325 days IF you put the pedal to the metal and have your architectural plans, cost breakdowns, and NEVER change a thing. So to break ground is almost a year away. $400 rehab -what exactly are you doing? Are you thinking only interior cosmetic no plans?