How should I finance the Deal?

1 Reply

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)

Asking $110K

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.

@Angela Stevenson

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.