Renovation Loan Success / Duplex Buy & Hold

[Joey Palmer]

What do you do when your denied a 203k loan due to the balance of the renovations exceeding what banks can lend on a 203k loan? Find another option! 

After tedious hunting through the online catacombs of bank loan options I stumbled upon Wells Fargo's renovation loan. There was no limit to the amount lent for renovations as long as the "future" home appraised for as much or more than the home and reno costs combined. 

Meet my 2nd buy and hold deal, off market duplex in Cincinnati, OH (Oakley):

Vacant (2) unit duplex (1 bed first floor / 2 bed second floor)

This place had squatters living in it dealing and using Heroin, yay. 

(3) months later:

Deal details:

Purchase Price: $90,000

Renovation Cost: $60,000 (Financed)

Down Payment: $37,500 (25% of Purchase Price 90k and Reno Cost 60k combined)

Currently Renting: $2,075 ($875 + $1,150) / month

PITI: $907

I plan on utilizing this type of financing again in the future. If anyone has any questions at all please don't hesitate to reach out. I just wanted to share this with the BP community as it was a relatively easy experience utilizing this renovation loan.

I look forward to sharing my next deal in a couple months as I'm currently working on an off-market flip in Hyde Park (Cincinnati, OH). 

Thank You!