Owner contract and refinance

4 Replies

I am working a deal that would allow me to purchase owner financed. I will give him 10% down with monthly payments and a 5 year balloon. 

My goal is to rehab the property and then refinance to keep as a rental.

Here are the numbers 

Purchase price- 225,000

Down payment- 25,000

Rehab- 50,000

ARV- 400,000

After the rehab can I refinance for 300,000 and pay myself back the downpayment and rehab costs? And payoff the original seller at the same time through escrow

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@Geordy Rostad

Oh nice! This is off market. I was originally going to list the property, instead decided that after talking with the seller that I will purchase it. 

The question will be to either flip and cash out roughly 100,000$ or hold and get a renter in. I like cashing in flips when they are that much profit, but for tax purposes will probably keep it or do a 1031