Rehab Property in North Carolina with Foundation Issues...Will a Bank Finance it?
Hello BP Members,
I have a property under contract with a sinking/settled foundation. To buy or not to buy is my questions.
The numbers: ARV 175K; Repairs 30k (about 20k just for the foundation); Purchase 89K. There is a pending comp a few doors down under contract for 195K. My exit strategy is to sell the property at about 90% of market value to move the house fast and worst case scenario, I'll drop the price 72% of market value to sell the property at breakeven (or a slight loss).
I’m worried that, even if I fix the foundation and get a letter from the foundation repair company certifying their work, a bank will not want to finance my end buyer because of the pre-existing foundation issues.
I’m looking for some advice from BP members who’ve dealt with foundation issues.
Thanks,