Hello All,
I'm looking at an old farm house that is for sale by owner that I think I can get for $30k cash. It sits on 2 acres and is approximately 1,350 Sq. Ft. and has 3 beds and 1 bath. Since it only has 1 bath, I had planned on adding on a roughly 400 sq. ft. master bath taking the sq. ft. total up to 1,750. The house was built in 1911 and has been vacant for a number of years and is in pretty bad shape and will need a lot of work before it will be ready to sell, but if done right, I think the potential sale price could be in the $220,000 - $260,000 range.
My estimates for renovation cost are between $125,000 - $150,000. I've called a few banks in my area and none seem to offer loans on investment properties. I've also called a few hard money guys and since this is my first deal and I'm not an LLC I seem to be running into road blocks there as well. How do I get funding for this project? I could use my own cash to buy the house but I'd rather not. I'd prefer to roll the purchase price and renovation budget all into one load. Is this possible?
How would an experienced house flipper analyze this deal? I feel like this could be a real money maker, but given my inexperience, I may be missing a lot of variables.
Any help is appreciated and feel free to say it's a horrible deal, if it truly is one. You guys are the experts, not me!
Much appreciated,
Adam
