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Updated almost 3 years ago,

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Campbell McCoy
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3
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Need Investors! First BRRRR Deal!

Campbell McCoy
Posted

I am a new investor and in need of a hard money lender willing to take a chance on my first of what I presume to be many deals in the future. I've been listening to hours and hours of the bigger pockets podcasts every day for the past 6 months and have finally found an amazing off market deal. It's a $125,000 duplex outside of Athens. After reviewing Redfin and getting comps on the surrounding area, I've found that everything else appears to be selling for upwards of $250,000+ In that area. This house is in great condition just needs cosmetic work and some serious landscaping. With bigger pockets rent estimators along with my own research I am very confident I can get at least $900 a month per door and that's on the conservative side. My mortgage estimator puts me at about $600 a month. And after adding up Capital expenditures, Vacancy, Property tax, Insurance, and general maintenance I expect to be cash flowing a little over $200 a month the first year. I intend to rehab the property and expect the value to be at least $200,000 by the time I'm done which would give me more than enough wiggle room to pay back the loan plus an 8-10% interest rate within 6 months to a year after executing a cash out refinance and receiving 75% of the Property value. My local bank has agreed to give me a loan to value rate. I have sent a message to every hard money lender on Bigger pockets Networking tab and was wondering what other creative financing strategies I could pursue if I don't get a response. Worst case scenario I am planning on House hacking and getting an FHA loan but I would much rather rent both sides of the unit right away and not have to move that far away. I have $15,000 cash that I intended to use on the rehab buy would also consider using as a down payment for the the hard money lender if they were willing to fund the rehab. Your advice is greatly appreciated. Thanks BP Community!