How will you finance this deal ?
Hi All,
I have a property that needs some renovation. He is motivated since offering 0$ down or 0% interest. The owner has one goal, cash out of the property, and is offering seller financing. He can also guide me on the renovation ( this will be my first time doing it ). I learned about seller financing and was okay to offer a 30-year loan, a 5-year balloon, and 10k down. He sells the property for 150k. But here is the trick, the owner wants to cash out after 6 months. He is open to any type of offer if I can assure those points:
1. I will renovate the property ( the renovation will cost between 30-40k )
2. I will refinance in 6 months and cash him out.
Once renovated, the property can be valued at 170k-180k ( He mentioned 200k, but I'm not confident in that ). The renovation will convert a row single family home into 3 family home ( the layout is already there ):
- the first flow will be 1 bed, 1 bath
- the second floor will be 2b, 1bath
- the basement.
If those 3 rents, I can easily have $1800-$2000 in gross rent per month.
So any creative financial idea I can propose to him?
PS: He suggested me an FHA 203k, but I'm not open to that because I want to reserve my FHA loan to buy my primary residence home by the end of the year. that's why I'm interested in this deal, well done, it will not impact my credit score.
So how will you go about this deal? I will reply to any questions and update the post accordingly.
Thanks.