$80k loan needed to flip SFH up for auction 4/19

[Mason V.]

Next week Wasco County will be auctioning off a two story 3 bed 1 bath 1564 sq ft home that has an unattached garage and a chain link fence going all the way around. Judging the recent properties sold I estimate the property should fetch a price of around $115,000 and up after rehab.

This sounds like a good deal to me. However, there are some known downsides. The landscaping is a disaster and needs to be entirely replaced. the exterior looks like it will mainly need mostly cosmetic work like new paint and some shingles replaced.

From observation the most troubling part is that the current owner is still living on the property. I recently sent them a letter about doing a Subject To deal but I have not gotten a reply. As for walking up to the front door, I didn’t feel like seeing if their dog was inclined to bite me. Thus I also don’t know what the interior looks like and hope it is not too hideous. I will keep trying to get hold of them though.

My basic strategy is to move in, fix the house up and sell it. Most of the work will be done by me sense I have carpentry and landscaping experience.

In addition to a typical flip I am also considering buy & hold, if possible separating the levels for the creation of a duplex, Leasing, rent to own and renting with intent to sell it as a turnkey property. The ideal situation though it to sell it. As my first property I would rather have the more immediate funds.

The terms that I have in mind are a $80,000 loan with the house as collateral. Term length would be 20 years with an interest rate of 9%. That would have me paying you about $720 a month. Beyond your $80,000 I also have a $11,000 of my own funds to utilize.

The reason I am interested in a personal loan instead of hard money is due to my location. With The Dalles being such a rural location, 80 miles east of Portland OR with a population of 14,000, none of the Hard Money Lenders I have contacted will service the area.