Trust selling home

[Stephen Frazier]

Hi all, My mom's land lord died and his kids are opting to sell the home. I was thinking about buying the home but not sure on the best strategy. 
1. I was thinking about using a dscr loan but need %20 down. I have about $120k of equity in my home and was going to do a heloc, the only issue is I have is I currently have fha partial claim on the title from covid. Any chance I'll be able to get a bank to do a heloc in the third position ?

[Nicholas L.]

@Stephen Frazier

I'm not 100% sure what you're asking, but I would strongly recommend against buying something with 100% financing where part of that financing is a HELOC

You will probably just lose money

If the home is owned free and clear, maybe the kids would do seller financing?  But if they want the cash now, that will obviously not work

Hope this helps

[Minna Reid]

0% chance HUD will subrogate the lien on the partial claim.

[Lilian Smith]

Could you possibly offer to purchase the home, asking the seller/s to finance the down payment? 

[Stephen Frazier]

Quote from @Nicholas L.:

@Stephen Frazier

I'm not 100% sure what you're asking, but I would strongly recommend against buying something with 100% financing where part of that financing is a HELOC

You will probably just lose money

If the home is owned free and clear, maybe the kids would do seller financing?  But if they want the cash now, that will obviously not work

Hope this helps

Thanks for the reply. Your right. Just trying to think of a creative way to buy it so my mom and brother don't  have to move out.
I also was thinking about doing a hard money loan. I asked my mom to see what they want  for the house, I have a hunch that it's payed off and they just want to offload it, they mentioned doing a quick close .. the ARV is about $220k and she's kept up with maintaining the property.I'D buy it with hard money, fix a few things while she pays me rent (the hard money interest rate)  and do a cash out refinance in 6 months.Do you think that's a good strategy? 

[Nicholas L.]

@Stephen Frazier

only if the numbers work.  for that to be worth it you need to buy it at a significant discount.  otherwise you'll just struggle to pay off the hard money loan.

[Erik Estrada]

Quote from @Stephen Frazier:

Quote from @Nicholas L.:

@Stephen Frazier

I'm not 100% sure what you're asking, but I would strongly recommend against buying something with 100% financing where part of that financing is a HELOC

You will probably just lose money

If the home is owned free and clear, maybe the kids would do seller financing?  But if they want the cash now, that will obviously not work

Hope this helps

Thanks for the reply. Your right. Just trying to think of a creative way to buy it so my mom and brother don't  have to move out.
I also was thinking about doing a hard money loan. I asked my mom to see what they want  for the house, I have a hunch that it's payed off and they just want to offload it, they mentioned doing a quick close .. the ARV is about $220k and she's kept up with maintaining the property.I'D buy it with hard money, fix a few things while she pays me rent (the hard money interest rate)  and do a cash out refinance in 6 months.Do you think that's a good strategy? 

Buying with a hard money loan may or may not make sense here. We will need to know the PP, and Rehab cost. If the loan ask is under 70% of the ARV, then you should be okay to refinance the note on a DSCR loan once it is stabilized.