Echo Park, Los Angeles - Any loan options for my situation?
Hello,
I have a single family home in Echo Park (Los Angeles, CA 90026) that I was gifted and is owned outright. The property is not habitable because it needs a full make-over, including foundation, roofing, electrical, plumbing, interior, exterior etc. I have received proposals to complete the work in the 200-220k range.
Comparable properties in the area, that are in good repair, are selling for 850k+. I have received cash offers for my property in the 380-400k range, as an example.
I also have debt from student loans and revolving credit, to the tune of 80k. I don't have sufficient cash for a down payment. However, I have 5 years working at my current job and a good salary.
Are there any loan options I could take out against the property that would enable me to both rehabilitate the property (200-220k) and pay off my debt (80k) at the same time? The reason I would need to pay off my personal debt at the same time I take out the loan (instead of after the flip) is to be able to afford payment on the loan itself. The debt has me spread to thin to take on a mortgage without paying off the debt first.
One obvious alternative is to pay off the debt before taking out a loan, but that will take me a few years, and I'm trying to get things started now.
I realize I'm probably a unique (and bad) situation, so thanks in advance for any advice.