Thanks for the help Steven!
Back to the post Kyle J replied to about:
So, If I've only got the 7k in the bank RIGHT NOW, and the rest of what I need coming in, say 21 days or less...
What are my options without trying to get financing? I was hoping to send a large earnest money deposit to show my seriousness in my offer, but it'd have to be 5-7K. Obviously I can not show proof of funds yet until the tax return comes in (which will be less than the 21 days).
So, if I want to make an offer, what can I do? Make the offer anyway and see what happens? Will they ask for proof of funds, with in days of the offer?
So, to recap the situation:
I've found a property about two blocks from my personal residence, that is listed around $15,500.
It's a 3 BR, 1 BA with 1,110 sq, and is in need of repairs. The roof and exterior (siding) look to be in decent shape. There is no garage or shed, but does have central air.
The inside appears to have been trashed, new flooring, patch several holes (dry wall), the kitchen needs replaced and I believe the bathroom will also. (This is just from looking in the windows so far, I'm scheduling a tour shortly).
I estimate at least 5K in repairs, with no more than 10K total. I should be able to rent the property out at $500 to $600 monthly.
I hope to submit an offer of either $14,000 - $14,500 and then taking out a personal loan using the property as collateral to get the money required to rehab the place to rent-able standards. I know I'm taking a big risk here by spending all of the cash I have available and becoming cash poor, but I'm prepared to take that risk.
So, I want to make an offer for all cash with having 7k in the bank with the other 7k coming in less than 21 days, but I feel if I wait that long, the property will be gone. So, I hope to send an offer with a EDM of 5-7K and no proof of funds, hoping that it buys me enough time to get the rest of cash I'll need (my refund). Also, I'll want to get an inspection.
Reasonable? Possible? Worth a shot? Risks? (Sorry for the long posts, but I wanted to post as much info as possible for the most informed replies.)