Need Help in a purchasing a house to flip?

Question

Hello,

I am new to real estate so I don't know how to go about purchasing a house without any cash. I have a friend that inherited a house after her father died. He has been deceased for over a year now. She applied for a loan to pay if off  but got denied.  Her father owes 38,000 to the bank and the city and county taxes are behind $988.75. She and her other sibling are at the point where they want to just let it go. The value of the house is $74,000 and . There are no major issues with the house. I would like to purchase the house but I don't have that amount of cash what should be the first step that I would need to take in order to own this house and flip it?

Shanelle Harris · Answer

Thanks for replying.

Shanelle Harris · Answer

Thanks for replying. All this information is very informative.

Kiyon Harley · Answer

If you're not familiar with construction or maintenance I would highly suggest taking a contractor there to get an idea of what it may cost to get up to rental or sale condition. I think that's a better option that looking up the info on a website. There may contractors in your area willing to give a free quote.

As far as rehabbing it with a hard money or private loan the numbers are tight because a lender would typically desire a home with solid equity before lending.

Christopher Blanco · Answer

Can you assume the mortgage? But even if you buy the house how are you going to rehab it?

You might be able to find HML to lend 60-70% ARV but its not going to be easy.

Shanelle Harris · Answer

Thanks for responding. Yes it may require new carpet or paint and things of that matter. No plumbing, electrical or mechanical issues. Do you know what a good website to look up that kind of information?

Kiyon Harley · Answer

By  "no major issues" do you mean it would only require a light rehab (paint, carpet, etc.), or are you moreso referring to no major issues related to areas like plumbing, mechanical, electrical, etc.?  Also, how are sales in the area? Perhaps a private lender/hard money would be a viable option if you want to flip it and can avoid a significant expenditure to rehab.

Shanelle Harris · Answer

Thanks for responding. Yes that is a option.

Bob Okenwa · Answer

@Shanelle Harris

Is bank financing an option?