Is your all-in budget $130K, meaning purchase/rehab/holding/closing costs all must fall within that number?

Hello -- I need to do a major rehab on a rental property that will cost about $50k-60k but the contractor does not want 1099 and wants nothing to be reported to the IRS.

The total cost for the renovation was $96,000.

Maryland Dept of Health placed a lien on the property in 2018 for the costs of the care, totaling about $90K. 

Some lenders may have a rehab/ construction type loan that can finance the purchase and repair costs but have a 6-18 month balloon that would require a refinance. 

In addition, the lender is going to incur costs including losses do to the time value of money if you stop paying and they have to take the property back.

The rest of the funds received will be considered a return on your cost basis and non-taxable as well.

The difficult part is going to be for buyers who will have to either come up with the funds to pay their broker or negotiate seller paid closing costs to cover it

I consistently see people with $10-$20k spend most of it on training and being told by these gurus they can make 30-50% returns with their eyes closers only to realize it will take 48 years to make back the cost of the training.

Do you have funds for your next primary purchase or are you needing to tap into the equity to get closing costs and down payment?