Can I use equity for a down payment?

[Aryelle Collins]

I'm looking at a duplex in St. Petersburg being sold for 85k (accepting all offers) ARV 120k needing about 7500 in repairs. The seller says there is a high amount of equity for this property. Can I use some of the equity as a down payment and can you explain how that works? Also what kind of terms would make this deal work if I were to use the equity?

[Steve Vaughan]

Even if buying under FMV with instant equity, a conventional lender wants to see skin in the game - a down payment.

If the seller could loan you money collateralized by a different property and you owner-occ/house hack it, it would be possible.  They have relaxed limits on source of funds for primary residences.  You used to have to verify where the money came from.  Not so much anymore.

Looking good while being broke is not what a real estate investor does.  Sacrifice and budget down to scorched earth to change your life.  No bars, restaurants, coffee shops, malls.  Brown bag your lunch.  Do your own nails.  Don't do what your broke friends do.  Drive a beater with pride to your first closing @Aryelle Collins!