Rehab Financing for Already Owned Property

[Jonathan Roberts]

Hello, 

TLDR: Work-ready SFR for full rehab on owned property, purchased for $125k in August 2023, needing $160k for rehab (total costs $285k, ARV $420k).

I am looking for a private lender to finance my rehab on an already owned, gutted property in a desirable neighborhood of the city (Upper Lawrenceville): demo complete, structural engineer sign-off, architect-approved design to move the stairs (which is not a small deal in Pittsburgh), and city permit. AKA Work-ready.

I purchased the home with an FHA loan, and my original contractor (as required by FHA otherwise I wouldn't have used one) underbid the contract not understanding the inflexibility of such a loan. After much searching and working, I have a new GC, but my lender is unwilling to onboard a new contractor. This contractor will take me from gutted house to ready-for-drywall (reframing, new siding, finished basement, new siding, new roof, new plumbing, new electric, new HVAC), at which point I will take over and complete the internals with my team.

Exit plan is VA refinance, but I'm not unwilling to sell to satisfy all parties if necessary.

[Jonathan Roberts]

Quote from @Steve Moskowitz:

Is this your personal home? Also do you have investment properties as well?

No investment properties, this is my first purchase also why I'm using a GC to hopefully alleviate some experience concerns. The house is currently gutted, and while I would like to occupy one bedroom and rent the other two (3bd/3.5ba) as a "househack", I am willing to consider selling and foregoing this as a primary residence as I know many private lenders will not consider any form of owner occupancy.