How To Re-fi A FSBO In The Pittsburgh Area

[Kris Rudge]

Hello BP! I'm currently working on a deal in the pittsburgh area. I talked the homeowner into holding a note on a property during the rehab. I then will re-fi and pay him off and the private money lenders that I found. I thought I had a bank but I would need a loan on the property to then re-fi out of. Being that the homeowner doesn't have a mortgage and will be holding the property how do I re-fi out to pay him off and the private lenders?

Here are the numbers on the deal. It is a duplex that will bring in $900 to $1,100 a month. Renters would pay their own utilities.

House, rehab, and loan info: House $65,000 / pay the homeowner $5,000 when the contract is written up. Pay the homeowner 6% on the $60,000 over 12 months (6% of $60,000 = $3,600/12 is $300 a month). ARV of the property is $130,000 to $145,000. Rehab will be around $30,000 and I will be paying 6% on the private money upfront ($30,000x6% = $1,800). I'm looking to see if others think this deal would work, but mainly looking for a bank that I can re-fi to pay off the homeowner and the private money. Best option is to find a bank that I can do this and that has little to no seasoning period. I would love to get the rehab done in 2-3 months re-fi out pay everyone off and start working on another deal. Any and all help would be greatly appreciated!