I am trying to think of ways to purchase my grandmother's home as a primary residence with the intent of keeping it as a rental down the road. My credit and income is good enough to qualify for a mortgage, but I am just short on cash right now for a down payment. The house overall is in great structural and mechanical condition, just needs whole house updating. It is a 3/1 approx 1000sq ft in a nice KC suburb. ARV is somewhere in the $125k range. I am hoping to purchase it for around $80k and have estimated rehab at $25k ( I am a contractor and know this is an accurate and possibly over budgeted)
My question is, what would be the best way to finance this with little or no money down and work a deal that is both fair to me and my sweet grandma who is now in expensive assisted living?
My first thought was have the down payment gifted from either her or another family member and add the down payment cost to the loan and pay whoever back immediately. Would this work? Any other thoughts?
One last note, I will have my RE license as soon as KS decides to process it ( I have been waiting over 6 weeks already!!)
Thanks in advance for your thoughts!
Hi Does Granny own it free and clear
yes...it has been payed off for a long time
1. Private finance it with grandma for 1 year and then do a refi for the cost of closing.
2. Write it for $99k and have grandma gift you the 20% down netting her the $80k.
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