Construction loan information
So I found a house that is currently listed for $50,000 and I would put 20% down on it. After looking at the property I'm estimating 30k to $40,000 will be needed to be put into it. I just spoke to my lender and he informed me they do not do construction loans on rental properties. Besides paying out of pocket for the work how else could I cover it. I heard on one of the podcast where people will essentially get the loan for $90,000 and have the seller cut a check for $40,000 to the buyer but the house would have to appraise at that value. How would I go about doing this. Any advice would be appreciated.