Private Money for Reno Costs?

[David Prince]

Im looking for a private money partner on a recently acquired property in central Indiana. The property is under contract and will close on June 1. I have contractors on standby ready to walk the property on day 1 get to work. My contractors have longterm relationships with building dept to help with pulling permits and scheduling inspections. 

About me: 

I am a RE Broker in Chicago IL and getting started growing a rental portfolio. I owned a previous property in Indiana as a personal residence and completed a full reno contracting out only the larger projects (electrical, plumbing etc) and completing the rest of the work myself. I sold for a modest profit after relocating to Chicago. This is my first property in the portfolio.

This property is a small 1,000sqft lake house bungalow. The property will need a gut rehab including roof, chimney removal, floorplan modfications, plumbing, electrical etc. Its a big project but similar to my previous property so I feel confident in the scope but cautious as well. We close on June 1 so I am working through the project planning and queuing up permits, contractors, supplies etc and selecting finishes. Hopefully this will be an 8 week reno once we get started weather permitting.

I plan to BRRR with this property and deploy the equity in the next project. The lake is easily rentable on AirBNB or longterm tenant. If you are interested, email me and I will send you the property packet with further details.

Details:

Purchase Price- $30,000 with 10% down, 8% interest, interest only payments for 24 months

Reno budget- $30,000 including some contingency for unexpected costs

Resale value- $85,000-90,000

Highlights- 2bed, 1bath, 3 lakefront lots, 100ft of lake frontage, small dock, new furnace and well pump/pressure