I found a great property and as far as I can tell, it's about 100,000 below market value. Now, it needs a ton of work. But, I think it's a pretty safe bet that it would be profitable. I am a complete novice to securing financing of any kind. I am not a seasoned REI.
I am wondering, what is my next play? I have found the deal, the comps indicate it would be a very solid buy both either from flipping or buy and renting. Not sure what you guys think?
Need a little more info. But going to a mortgage broker would probably help you out a lot. Are you planning owner occupying is it a 4 unit or less? It all depends on what type of property you looking at.
It's really rough on the inside, I'm not sure it would get conventional lending. I plan on renting it out or flipping it. I will not live there. It's a single unit. It's a row home.
@John Ratigan , step 1: learn how to secure financing.
Step 2: Secure financing.
Step 3: Put in a "safe bet" Offer.
Step 4: Move on to other potential deals in quick succession.
Step 5: Repeat step 4 ad infinitum (while waiting for "In Box" replies)...
Yes, I do need financing. Let me ask you guys, if the house was listed at 140,000 but you thought it could be worth 230,000-250,000, but the house needed 45,000 in work, what would you're safe offer be?
@John Ratigan , probably no more than list price, but that is no guarantee that 1: the Bank would even accept an Offer @ their full List price, and 2: the rehab costs will automatically stop at just $45k.
Lesson 1: The Banks are not in the business of letting you get free equity easily!
Great point. I have contacted the Agent who represents the bank to feel him out and also see the property. Good point about the bank and about the 45k. I will have to factor that in when I make my offer. Thanks Brent.
If you would like, I will refer you to a fantastic Broker in my network up there to assist you throughout the transaction.