I put an offer on a property, it's pending acceptance. However, in the meantime, even if it's not accepted I want to know the best way to fund this deal and which exit strategy. Here are the numbers.
5 bdroom 3 bath main level, unfinished inlaw suite in basement. 1900 sq ft but basement footage was not included via tax records. (idk why)
Estimated repairs: 65K
ARV : $200 -225k I did a range because of the area.. It's an older neighborhood with old and newer homes.
Offered : 90K
How would you work the deal? I'm a newbie so I'm open to learning ways to structure deals.
Basements aren't considered part of square footage if they are below grade (below land).
Do you plan on living in the property? Or will this be a rental? Do you know the local laws regarding renting out a basement?
If you're going to live in the property, you can use cash or a 203K loan.
If you aren't going to live there and will rent out the property then you can't use a 203K. You would either have to use cash or a hard money loan.