Hello bigger pockets family I am coming to you because I am confused with putting a deal together.I am having a big dilemma in how to approach this property. I found a property that I like that needs an extensive rehab. I have never done A rehab, but I am willing to take on this challenge.The property I can purchase for 50 K however that would deplete all of my cash and will probably take that much to rehab. After repair value for this property is anywhere from 100 K to 170k in this particular area however this property would not appraise for that value at this time. For a buy and hold investor, what is the best approach with this property? I am doing my due diligence and making sure that all of the numbers fit and making sure that the cash flow meets all of my criteria. My dilemma is how do I approach purchasing this property without depleting my cash reserves.Somebody help me out, point me in the right direction. I’m in Raleigh Durham area wanting to invest. Look forward to hearing from someone.
1. You'll need a value that is tighter than between $100K and $170K. You can get an appraisal or a BPO.
2. You'll need to know the repair costs. A contractor can do that and provide a scope of work.
3. Once you have those numbers, you can determine exit strategies.
4. For a Buy/Hold investor, you'll need to know the rent numbers.
Once you have all of this information, you can determine whether to wholesale or borrow from a bank or HML / private lender.
Agree with Adam. After you have more concrete numbers your best option would be to find capital somewhere , lenders , banks or joint venture with a money partner.
Best of luck in all your endeavors.
Thanks Adam and Anthony, I appreciate the information. More due diligence is for sure needed, I shall continue on and more concrete numbers. Again thanks for the insight.