How to Buy $55k property in cash?
Hi guys,
I'm currently looking into a deal in a low end part of Dallas where a 3 bed 2 bath SFH is on the market for $55k. The current tenant pays $750 and the rental comps support it raising to $850-$900, along with the section 8 pricing actually being $1030 a month. The taxes and insurance would be low on this property, so overall it seems like a solid deal that could potentially almost meet the 2% rule.
However...the seller wants cash. This property has been fully updated and needs almost no repairs, and I think based on comps it would actually appraise for $65-70k (in fact, a smaller house 2 streets over is under contract for $89k). But based on what the seller is saying, she just wants to get it sold and ASAP, so cash is what she wants.
So that brings me to the question... Where should I try to get $55k? Personally, I have about $25k I could put into the deal, but I'd still need another $30k. At the end of the day, I want to buy and hold on this property, so I'd like a way to come up with the cash and refinance ASAP to get my cash out and have a traditional rental property. I've looked into hard money and personal loans and while some lenders do deal with amounts around 30-40K, most don't, and the ones that do have very high fees.
I'm not sure if there is a creative option I'm missing here, but I'd love any and all advice on the best way to get myself into a traditional mortgage on a 55k property, but with cash up front.
Thanks for the help!