Hard money loan denied

[Elizaveta Dolzhenko]

I am under contract to purchase a single family home in tampa, fl and my hard money loan got denied less than a week before scheduled closing.

I have a backup option to borough money from my father, but wanted to get advice whether I should continue with the deal.

Here are the numbers:

Purchase price: 68.5k

Arv: 110k (this is the appraised value, but not a lot of comps for this property)

Rehab est cost: 10-15k (mostly cosmetic, plus roof)

Est rent: $950-1050/month

Specs: 984 sq foot home in a good area with good school zones, built in 1958, on .6 acres of land

The reason hard money loan was denied: hm company owner did not like that the house is small and frame and not in a community.

What I intend to do with the property: fix, refinance, and rent out. I estimate my cash flow to be around 450-500 a month after mortgage, taxes, and insurance but before other expenses. 

In my area there aren't a lot of properties well under 100k that are in a safe neighborhood with good school zones, which in why to me the property has potential. However, I am a little concerned with the fact that the hmld denied the loan because they didn't like the property.

Thank you in advance for your advice!

Lisa