We basically would need to finance $133,500 total to have enough money for repairs, we guess, but a normal mortgage won’t let us go above the sales price of $113,500, obviously.We could mortgage & put the repairs on a credit card, but short term the cash flow of the house would not let us pay the credit card off quick enough.The seller cannot finance at all since he needs to pay heirs, so he needs the $113,500 at closing.I do not yet have any private investors.Any help/guidance/suggestions we would greatly appreciate!

Just as in real estate, you can almost always get things cheaper if you're paying all cash instead of check / credit card / accounts payable.

While I tend to agree with your analysis I think you have missed out on one very important detail:A (traditional) mortgage is a forced savings plan.Yes it is true that he is earning profit / building equity each month (so long as rents exceed actual expenses).

Lenders know this is true and they perpetuate the issue by continuing to lend (because that's what they are in the business of doing).

Yeah that is true, but you and I both know that only a handful of people who get the IO products are disciplined enough to make more than the min. interest payments.

Because almost everyone in this area has bad credit because of medical bills, or credit cards, bankruptcies, or whatever.

Now I charged up my cards, found a great paying job(unlimited overtime!)

I have to sell asap. its a true hardship situation and very stressful I live ih Fla and have a new job.

Listen, and people will tell you their true reasons for selling.

Her motivation is to cash out equity and pay off some credit card debt.