The bullet points

Intention is a Buy-Hold / BRRRR

-Lady passes and leaves here home in southern California to 2 women. Seller A and Seller B.

-Seller A is an acquaintance to my Mom. Seller A is willing to meet with me for an Off Market deal before listing.

-I meet and pitch Seller A to do Seller Financing and she is in to it.

-However, now i hear Seller B is money hungry and just wants to sell and get her chunk. (about 215k)

-Unlisted Sale Price: 600k (buyer pays all closing costs)

-Outstanding Loan: 175k (Seller A has been paying this alone since the inheritance, about Aug '22)

-Current Mortgage: 1650/Month (with PITI) on a Variable Rate product through Fargo

-Home needs rehab estimating 75k

-Current Comps show an estimates value after repair of $800k, conservatively. 

I only want to do this with lent funds so i assume i can either get a loan for;

Scenario 1

Seller B's cut of $215k + reno costs of $75k

Thats 215 against the mortgage as well so I can then seller-finance through Seller A for the remaining $385K. They pitched 5%, duration is in the air.

I then do the rehab with the 75k and refinance in <12months with my ARV and pay everyone off.

Scenario 2

Or, do I just try to get a private loan for the sale price and the rehab and then refinance under the ARV?

Looking for insights, opinions (and money), including other options i am not aware of.

I have also hunted two different occupants that would be very happy to move in to the home in November (after the rehab) and pay 2900-3000 per month. No hard commitments but it illustrates that the market is open to such a home at such a rate.

Thank you for reading this far!