BiggerPockets

I'm trying to purchase a duplex and am seeking funding sources before I make an offer.

The property is a duplex 2 x 3/2, 3000 sq/ft. Bank owned for 4 months. Currently has one tenant (3.5 years) paying 700/mo. I have another tenant lined up at 650/mo. Unit is ready to rent at close. List price is 100k. I plan on offering 60k and settling up to 68k.

I have excellent credit (~800) but limited cash. I can put 10% down. My only debts are my primary residence (an REO I bought 18 months ago), a condo (previous primary residence now a rental) and student loans. No credit card or auto debt. I have nearly 200k in credit lines with $0 balance. Stable job history (9 years with current employer).

My plan is to buy and hold as a rental and I'm seeking the best opportunity better than 14% and 4 points because property taxes are high and the numbers are to tight for comfort. I've tried getting a HELOC on my primary but banks won't go over 60% LTV in FL. I'd need something in the 12-24 month range until I can use the rental income to refi.

I'm open to all advice and suggestions. Thanks in advance.

We offer a Hard Money Referral service that may interest you. If you want more details please forward your contact information to:

info@finsolamerica.com

Are there no options for me?

Thanks Jon. Unfortunately, I run into DTI issues with conventional financing since I already have two mortgages. Using lines of credit (from CCs) that large would be prohibitively expensive and likely trigger the banks to immediately cancel and reduce them so that they would be maxed out and likely kill my credit.

Is owner financing possible with an REO?

I've reached out to friends and family but nearly all of them are debt strapped and the ones that aren't and previously asked to go in on something with me quickly do an about face when I bring something to the table.

I've been hitting up all of the 'local' banks but they all operate like the big banks. Makes me wonder if there if there is any distinction between them.

Is it possible to make a cash offer with money from a hard lander? In my previous experience they've provided me with a prequal letter to submit. If this is possible I could scrape 25k, use 25k of hard money and submit a cash offer for 50k with no contingencies.