Updated almost 8 years ago on . Most recent reply
Funding cash only purchase
Hi all! Major newbie here with tons of questions on a possible stellar deal- Gonna set this up bullet point style and try to keep it concise.
Deal Details: 2.88acre property (desirable mountain area near golf course). 2 homes Zoned R2 single family (for the one property)-confirmed with area lender that these deals are commonly financed. 2 homes, both roughly 3bed/2ba 12-1500 sq ft renting for $700and $745 currently. Both tenants want to stay (most likely wouldn’t once rents increase. Great rental market. Seller asking $185k cash offer preferable. Per sellers agent, “one home is not worth rehabbing. Kitchen floor falling into oblivion.” My request to see the property will only be granted if an offer is submitted sight unseen.
Plan A: Fix and flip both homes, split the lot into two, current market supports a 200-250k return on BOTH!
Plan B: BRRRR and increase rents to market value, $1200-$1500/Mo EACH.
Questions:
*How do I get around financing difficulties if properties are in substandard shape?
*Would hard money be the way to go even if I joint venture with someone who can front the down payment?
*Should I submit an “all-cash” offer contingent on financing and inspection even tho I don’t have the financing lined up yet?
*Should I get a pre-approval run by my lender just so I have that to show the seller? Along with an offer with contingencies?
ANY advice, recommendations, etc. would be greatly appreciated. This is my VERY FIRST potential deal