Here's what I understand from your post :
You want to buy a property and rehab it for 50K all together. You have 15K but trying not to touch it.
Here's a classic way to buy a home (no money down).
Let's say the home sells for 30K, there is 20K worth of rehabs and ARV is 80K.
Find a private lender (family, friends, colleagues, etc). Get a private loan for 50K (30+20).
BUY the home all-cash, REHAB it then RENT IT. After this, it should be worth 80K. Go to a bank and get a traditional loan for 80% of its value through REFINANCING, which is 64K (80% x 80K). Get the 64K, payback the 50K + interest to your lender, keep the difference and then you have a cashflowing property with 16K equity in it that you bought with no money down. How fantastic is that?
I invite you to read this article regarding BRRR (Buy, Rehab, Rent, Refinance)
It sounds downright incredible Kevin! I won't barrage you with questions until I have read the article you have provided, but can I do the same process with my own personal funds; i.e. Buy (my cash), Rehab, Rent, Refinance? I would like to cut out the private lender if possible.
Also, I will have to research this refinancing when there is no mortgage. I have refinanced in the past on a home that I lived in and had a mortgage on, but not when I own a home outright. I honestly did not know that was possible. Maybe my interpretation of refinancing is flawed...
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
Join the Largest Real Estate Investing Community
Basic membership is free, forever.