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Updated almost 7 years ago on . Most recent reply
How do i fund this purchase?
I found a property i want to buy but it seems my conventional loan lender may have concerns about the repairs the house needs. The neighborhood is 300K+ and the property was built in 1987 and is listed for 265k but after talking with the seller i can negotiate down from here because it does need some repairs. I estimate some electrical work, kitchen rehab, painting, & flooring. My lender seems to be concerned about the repair work. Is there a different type of loan that i can get that is more comfortable with a property that does need repairs? I have great credit(815) and money for the down payment and repairs so i dont see what the issue is....i dont want this deal to slip by so i need some advice on how to structure the deal.
Most Popular Reply

Not sure what type of home it is or if it is local to you. But if you don't mind moving in then you can do a 203k and house hack it as a live-in flip. That way you can move out and rent it after a year. Or you can sell it down the road (after 2+ years) and pay zero capital gain tax.
If you can't swing moving in then I would look to get private money for the renovations. Listen to Bigger Pockets Podcast Episode 289 for some tips on that.