Rehab loan on abandoned house.

[Seth Willis]

Hello,

I have come across a completely abandoned homes (abanonded in 2006) so I assume we can all gather up that it'll need a full rehab inside and out. I haven't yet obtained the title but I am working towards it. My question is, how do I go about paying for the rehab? Let's say I get the house for all in $5,000. Im assuming it'll need around 50k-60k in rehab costs. ARV is around 75k+ based on recently sold houses near it. Not to worried about that to be honest. Can I take out a normal FHA loan and put 3.5% down on the 60k loan and rehab it ? Or do a hard money loan and cash out? I have read that they do refinances based off of purchase price correct? Anyone with any experience in abandoned houses and fixing them up please help. Thank you

[Kimberly Crites]

May I ask how you go about getting the title? I'm new here, just found you guys. I have done REI in the past for my Grandparents and managed their properties for them. Now that they have passed on, I am wanting to do it for myself. I have an interesting scenario for a seasoned investor or a real estate attorney. I have found a house that (in all sense of the word) is abandoned. 13 years now. It is overgrown, and is causing rodents and pests to infiltrate the neighborhood. The neighbors are sick of it, They have told me all kinds of stories about the house. The owner pays the taxes on it but has not lived in the house since 2005. She refuses to sell and has had multiple offers. The house needs work, the main water main burst under the house years ago and she did not have the funds to fix so she left. The house is on a community well and the neighborhood shut the water off. No electricity on it for 13 yrs. I want to rehab it and use it for my personal home. Can I pursue a suite for abandonment or nuisance with the county? Get a quiet title or something like this? I am still trying to locate the owner but have info on some friends and family to try and contact. Neighbors are ALL willing to give affidavits for a suite. Any advice or system for doing this?

P.S. The neighbors have told me the owner is crazy. She has had multiple offers to sell throughout the years and refused.  She does not have the money to fix it up.  She has made comments like this to the neighbors.  She has stated she would just like for it to fall down or burn down. There is no mortgage or past due taxes on the property.