Rural fix and flip, comps are 10 miles away

Evansville, IndianaWantProfessionalsLender

Rural fix and flip, comps are 10 miles away

Member since 2024 · 30 posts · 18 votes

I'm under contract for a triplex in Boonville Indiana, the purchase price is $192,000, the arv is $280,000 and will need $20,000 in renovations.

Looking for a lender who can do "rural" fix and flip (hold for air bnb or long term). I don't feel like it's rural, but I'm being told that it is because the comps are 10 miles away.

Needs to be 90% LTV.

Any ideas?

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Miranda Holland

Lender · Macon, GA · Member since 2015 · 191 posts · 59 votes

Quote from @Rob Austin:

I'm under contract for a triplex in Boonville Indiana, the purchase price is $192,000, the arv is $280,000 and will need $20,000 in renovations.

Looking for a lender who can do "rural" fix and flip (hold for air bnb or long term). I don't feel like it's rural, but I'm being told that it is because the comps are 10 miles away.

Needs to be 90% LTV.

Any ideas?

I’ve encountered similar situations where comps were further away, and it can indeed be challenging to find lenders who are comfortable with that. When working with rural properties, some lenders might still consider the deal if the comps are strong, even if they're a bit farther away.

Sometimes it's beneficial to gather as much data as possible about the area, including any local developments or attractions that might support the ARV.

If you have a local lender or a smaller bank that understands the area, they might be more flexible with rural properties.

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Chris SeveneyBusiness Member
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Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
2y
Quote from @Rob Austin:

I'm under contract for a triplex in Boonville Indiana, the purchase price is $192,000, the arv is $280,000 and will need $20,000 in renovations.
Looking for a lender who can do "rural" fix and flip (hold for air bnb or long term). I don't feel like it's rural, but I'm being told that it is because the comps are 10 miles away.
Needs to be 90% LTV.
Any ideas?

I think the bigger issue is the 90% LTV more than anything. Keep calling around that is what I would be doing.
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Erik EstradaBusiness Member
Lender · Member since 2022 · 6k+ posts · 1k+ votes
2y
Quote from @Rob Austin:

I'm under contract for a triplex in Boonville Indiana, the purchase price is $192,000, the arv is $280,000 and will need $20,000 in renovations.
Looking for a lender who can do "rural" fix and flip (hold for air bnb or long term). I don't feel like it's rural, but I'm being told that it is because the comps are 10 miles away.
Needs to be 90% LTV.
Any ideas?

Do you have experience? Any flips completed prior in the area?
[email protected]818-269-7983
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Rob Austin
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Member since 2024 · 30 posts · 18 votes
2y
Quote from @Erik Estrada:

Quote from @Rob Austin:

I'm under contract for a triplex in Boonville Indiana, the purchase price is $192,000, the arv is $280,000 and will need $20,000 in renovations.
Looking for a lender who can do "rural" fix and flip (hold for air bnb or long term). I don't feel like it's rural, but I'm being told that it is because the comps are 10 miles away.
Needs to be 90% LTV.
Any ideas?

Do you have experience? Any flips completed prior in the area?

3 buy and holds in the last 2 years.
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Miranda Holland
Lender · Macon, GA · Member since 2015 · 191 posts · 59 votes
2y
Quote from @Rob Austin:

I'm under contract for a triplex in Boonville Indiana, the purchase price is $192,000, the arv is $280,000 and will need $20,000 in renovations.

Looking for a lender who can do "rural" fix and flip (hold for air bnb or long term). I don't feel like it's rural, but I'm being told that it is because the comps are 10 miles away.

Needs to be 90% LTV.

Any ideas?

I’ve encountered similar situations where comps were further away, and it can indeed be challenging to find lenders who are comfortable with that. When working with rural properties, some lenders might still consider the deal if the comps are strong, even if they're a bit farther away.

Sometimes it's beneficial to gather as much data as possible about the area, including any local developments or attractions that might support the ARV.

If you have a local lender or a smaller bank that understands the area, they might be more flexible with rural properties.
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