Denver Metro Area, Hoarder House.

[Andrew DeLorenzo]

Good morning,

I've been working a lot on finding off-market deals for myself through direct mail, cold calling, and driving for dollars. It's been about 3 months of effort and a few leads have come my way but this week I think I might have a serious home-run, the trouble is its a seriously distressed hoarder home. 

The couple is seemingly in their 70s and disabled, after visiting the home I'm legitimately concerned for their health and safety and feel like its my obligation to try to help. Needless to say the couple is motivated to move and aware that the home needs an enormous amount of work, hard to tell how much with mess, and are realistic about pricing. If I were to take on this project myself it would be my first flip, the property probably needs a full gut $100k rehab with an ARV near $500k, or I could reassign the contract to someone who has more experience dealing with these types of properties. I have a 10 year construction background and feel like this is a project I could manage over the next few months but the mess is intimidating.

To those who have experience with these types of properties, who are you using to clear out the mess? How does the condition of the home effect financing? I would going conventional if I were to keep the project. What kind of unexpected problems have you run into? 

Thanks

[Kevin Smith]

@Andrew DeLorenzo

Hey Andrew,

Conventional financing might be tough if it's in really rough shape.  I would consider hard money and/or owner financing for the purchase and rehab.  Once it's fixed up, you could refi into a conventional product.

I can pass along a list of lenders (hard money and conventional) and cleanup crews in the area if you're interested.

Keep us posted!