Updated over 4 years ago on . Most recent reply
Where can I get loans for very low price houses?
Hi all,
my husband and I are looking to start investing in real estate using the BRRRR strategy. We just found a house that would work very well after crunching the numbers, but it happens to be in a low income area where home prices are in the 50-70k area and this particular house is on the market for just over 30k. So far all I have heard from lenders is that they will not lend on anything under 70k. We have a possibility to get a heloc on our current home and get the house as a cash purchase if it remains on the market long enough for that, but I'm wondering if there are any lenders out there who would lend on a house that cheap and I'm just not finding them? How do you guys handle these kinds of low cost deals? Seems to me the whole strategy won't work if we won't be able to pull our heloc money back out after rehab because we can't refinance a house for under 70k.
I hope you can give me some advice! I guess I didn't do enough research on this, shame on me. I naively figured if I can get pre-approved for more than 100k getting financing for 30k would be easier, not harder lol
Thank you for any and all advice!
Cheers,
Melanie