Investor · Berwyn, PA · Member since 2016 · 39 posts · 8 votes
Hi,
I found a great property and as far as I can tell, it's about 100,000 below market value. Now, it needs a ton of work. But, I think it's a pretty safe bet that it would be profitable. I am a complete novice to securing financing of any kind. I am not a seasoned REI.
I am wondering, what is my next play? I have found the deal, the comps indicate it would be a very solid buy both either from flipping or buy and renting. Not sure what you guys think?
Investor · Snohomish, WA · Member since 2015 · 139 posts · 42 votes
10y
Need a little more info. But going to a mortgage broker would probably help you out a lot. Are you planning owner occupying is it a 4 unit or less? It all depends on what type of property you looking at.
Investor · Berwyn, PA · Member since 2016 · 39 posts · 8 votes
10y
It's really rough on the inside, I'm not sure it would get conventional lending. I plan on renting it out or flipping it. I will not live there. It's a single unit. It's a row home.
Investor · Berwyn, PA · Member since 2016 · 39 posts · 8 votes
10y
Yes, I do need financing. Let me ask you guys, if the house was listed at 140,000 but you thought it could be worth 230,000-250,000, but the house needed 45,000 in work, what would you're safe offer be?
Investor · Cleveland, OH · Member since 2015 · 6k+ posts · 2k+ votes
10y
@John Ratigan, probably no more than list price, but that is no guarantee that 1: the Bank would even accept an Offer @ their full List price, and 2: the rehab costs will automatically stop at just $45k.
Lesson 1: The Banks are not in the business of letting you get free equity easily!
Investor · Berwyn, PA · Member since 2016 · 39 posts · 8 votes
10y
Great point. I have contacted the Agent who represents the bank to feel him out and also see the property. Good point about the bank and about the 45k. I will have to factor that in when I make my offer. Thanks Brent.