Inherited Property — Weak Borrower Profile, Finish & Hold or Sell?

Question

Inherited 3/2 in rural MS, about 90% complete.

Remaining rehab ~$20K

Taxes owed ~$6.5K

Family loan ~$10K

Challenge: thin credit history on my end, negative credit and seasonal income on my husband’s. Traditional financing may be difficult.

Would you:

• Try to push through using asset-based/private capital?

• Slow-finish without borrowing?

• Or sell as-is and redeploy?

For those who’ve scaled from a weak borrower starting point — what was the most rational first move?

Trying to be realistic about underwriting, not just optimistic.

Samantha Hagwood · Answer

@Benjamin Aaker i was going to coordinate the work. i was gonna get a company that handles the mep work to go in and get those done then i have a guy who can handle the rest.

Marc Winter · Answer

@Samantha Hagwood,  you've described the challenge, but not the goal.

Are you looking for a long-term rental for income?  Based on credit, FHA 203 or DSCR might work for the financing.

However, if you post what you really want to accomplish with this property, it will help other BPs give you better suggestions on how to proceed.

Good luck.

Samantha Hagwood · Answer

@Marc Winter

mInitially, my plan was to sell the inherited property, walk away with whatever equity I could, and roll that into another investment.

But after running the numbers, I started looking at a BRRRR approach instead — finish the rehab, rent it through Section 8, stabilize it, then refinance and use that capital to acquire property #2.

The challenge I’m running into is financing the completion. Based on conversations with local banks, it sounds like my only realistic lending option may be hard money. With current rates, I’m not convinced the numbers would still make sense once carrying costs and refinance timing are factored in.

I do have about $30,000 coming in by summer. My original thought was to:

• Set aside solid reserves for the property
• Use part of that cash to strengthen the refinance position
• Combine refinance proceeds + remaining cash to fund acquisition #2

Now I’m reassessing. If hard money is the only path to finish and stabilize, I need to decide whether:

• The BRRRR still works under those terms
• Selling as-is (or lightly finished) makes more sense
• There’s another financing structure I haven’t considered

We don’t have a lot of capital, so this $30k is likely the last time we’ll have that level of liquidity available at once. I want to maximize it — not deploy it in a way that limits future options or creates unnecessary risk.

For those who’ve been in a similar position:

• Would you push forward with high-rate short-term financing to complete the BRRRR?
• Or preserve liquidity and pivot?

Appreciate any strategic perspective