Help! I am brand new to real estate investing. I was gifted a property that I would like to rehab and use as a rental. My question is what is the best way to obtain financing for the rehab. There are no mortgages or tax liens on the property which is in a state of disrepair. I have a deed and a lot of hard work ahead of me on the home built in the 1920's in a working class neighborhood that was passed down to me. Challenge accepted!! Just want to start off things right for my first adventure in real estate investing. Advice from anyone who has travelled down this road would be appreciated. Thanks!
Hello Angie! Thanks for visiting this site and using Forums to ask such a common question that we don't see near enough! If I were you I would consider a home equity loan or a private person loan if the bank gives you a hard time. Just improve it as what you find in that subject area and what the demand people want.. You might have to pay for several studies that will tell you if there any age problems like Asbestos, Lead Paint, and any environmental problems. You might get a city building inspector anything they might be aware of or they check before it's permitted or passed in that subject area. Just make sure you speak with an experienced building inspector in that subject area.
Since you have decided to rent it out , just be as economical as you can when you finish it out but be smart with any decision is made that impacts the maintenance cost. Your decision may impact the long term costs. When renting a property instead of selling take a different approach in the way you finish out. Depending on your relationship a neighbor might finance when shown on paper how they might make more money than the bank is paying, either for them or a family member.
Shop around for anything that costs, I hope some of this helps you.
Good luck to you!
@Michael Lee Thanks so much for responding! I will keep these great tips in mind as I move forward.