Newbie from Nashville + Conventional Financing Question...
Howdy - I've been a member for some time, but only recently developed serious interest in RE investing. I'm going to start with a buy and hold strategy and see where that goes in the next few months. I have some savings that I hope to leverage and buy 2-3 SFRs in the next 18 months to get started.
My question: I have my eye on a VA owned property for sale that is in need of a major face lift. The ARV is 240k. Assuming it needs $40k in rehab and I was able to buy it for $170k, what is my 20% down payment for a conventional loan if the house appraised for $200k today? Is it $10k since I bought it for $30k less than the appraisal or would I need to bring $40k down (or something else)? Assume I have great credit and a good, stable income.
Thanks in advance, Andy