$1.05 million single family financing

[Garrett H.]

Hello All,

We’ve been offered an opportunity to purchase a single family home for $1.05 in Gilbert via a family connection and exploring the best strategy for purchasing and obtaining funds. House is worth about $1.2 million ish on the market as is but owner willing to sell for less. 

We would be looking to flip or hang on as STR.
We have maybe 10% down available but stretches us a little thin. We do have multiple properties with lots of equity that we have setup as STR and LTR. I’ve not done a commercial or hard money lender before so not totally familiar with all of the criteria and if that is the best option? Can we use equity on other properties as collateral instead of a down payment so we can retain our liquid capital? 

Thank you in advance for any suggestions. 

[Chris Seveney]

Quote from @Garrett H.:

Hello All,

We’ve been offered an opportunity to purchase a single family home for $1.05 in Gilbert via a family connection and exploring the best strategy for purchasing and obtaining funds. House is worth about $1.2 million ish on the market as is but owner willing to sell for less. 

We would be looking to flip or hang on as STR.
We have maybe 10% down available but stretches us a little thin. We do have multiple properties with lots of equity that we have setup as STR and LTR. I’ve not done a commercial or hard money lender before so not totally familiar with all of the criteria and if that is the best option? Can we use equity on other properties as collateral instead of a down payment so we can retain our liquid capital? 

Thank you in advance for any suggestions. 

 If you are buying it for $1,005,000 to flip for $1.2M then there is no money in this deal. You will have to pay closing costs on acquiring it then closing and realtor fees on the back end - throw in holding costs, insurance, taxes and interest. I have one right now we are looking at for $1M, needs $250k in renovation and unless it goes for more than $1.8M it is not worth it to make sure we cover the risk.