Hey, Paul here in SC.
Property price: $210,000.00
Found a property that is held up by the FHA recording timeline. Recently purchased and the owners didn't understand how recording the mortgage affected resale. Here's what I'm thinking:
$10,000 down payment which is credited towards a $210,000 18 month lease option. Do the $40,000 renovation during the lease period and then sell the house and do a double closing.
I would love to hear your feedback and if anyone has done anything similar and what your experience was like.
Slightly confused here, who bought the house? Since you're talking about doing the rehab, then I'm just guessing you recently purchased the property?
Because if someone else purchased the property and you are now wanting to buy, fix/flip, then as long as YOU aren't buying via FHA, then the 90 flip rule doesn't apply. 90 day flip rule only applies for the end buyer IF they are planning on using FHA.
So if the rehab and listing is long before the 90 day mark, then in private or public remarks on the listing just CLEARLY STATE you are NOT accepting FHA buyers until X date. This way no one wastes your time or theirs. Then if they want the house bad enough, they will need to qualify for conventional, assuming they are getting a loan.