Seller Financing and Personal Loan Refi?

Question

Hi BP, I tried searching for answers to this question a few different ways and couldn't get a clear answer.

Property is a 3 unit in a great area and I'm going to see if the owner is willing to do seller financing with 0% down, and refinance after 12 months in a conventional loan. If I didn't have my fingers in a different pie right now, I'd be able to afford downpayment on a 203k type loan (I would be living in one of the units), so I need to get creative with this one.

Right now the property is vacant, and it does need quite a bit of work, although it's habitable. I'm wondering if I can take a personal loan out to finance the repairs, while doing the seller-finance option, and then refinance both into one conventional loan after 12 months.

Does this sound feasible, or does it sound like I'm stretching myself too thin?

Thanks.

Luke H. · Answer

I would go for it, but I would also talk to family and friends and convince them to partner up or at least be backups in case you need more money. I would rent 2 units , month to month and fix 1 at a time.  You might start trimming our spending until everything is running smoothly again.  Note: I did hear our new president of USA has billions in debt... just saying.

good luck

Luke H. · Answer

In my OPINION if you get money out of the deal you can use it as you see fit. Put the money into my bank acct and then use it.  I don't know what, if any 'rules' your convention refi MIGHT have though.

:)

Leslie Sakal · Answer

Thanks for the reply @Luke H. --I suppose if I were to go the seller-financed route, I wouldn't have to live in one of the units at all. My real question is: is it possible to pay off a personal loan with a seller-financed > convention refi?