Going for my first rehab property, looking for advice.
Hey bigger pockets members. I have been here for a few months now reading the books watching the videos listening to the podcasts, etc. Almost closed on 2 deals but fell through (but learned a lot during both experiences)
I am stuck in this situation, and as I am new to this and I would appreciate any help or advice given to me. I am even willing
After running the numbers on different properties over the past few months I came across a property that works on the calculator.
I have a certified contractor with experience and a large team who is down to do the work.
I currently have $120,000 saved cash.
Im having issues with financing. I have 800 credit and minimal debt and income over 6 figures. Low debt to income ratio.
The property is being sold for $100,000 and the renovations will run me $160,000. Great location was being built and left incomplete. It is a 4plex, but supposed to have 2 units on the top to turn it into 6 units. (my contractor will build the 2 extra units on top)
I can get 6 units out of this investment at $850 each unit.
BANK SUMMARY SO FAR
(#1 I live in Puerto Rico) Some lenders will not lend because of this. Some banks lend in P.R. as well as states.
I have one bank who will finance me the $100,000 but not renovations. (about 10k closing and legal fees and 5.5% interest)
I have one bank who said if I buy the house cash and they will loan me the renovations. (5.5% the total amount loaned plus 6.5% interest monthly.
My main property is worth $330,000 and i have $160,000 equity on it. (In PR my bank will not do a home equity line of credit, only refinance the entire house which will run me over $10k in closing costs)
I keep reading on how the ideal situation is to pay as low money down as possible.
Can someone shine light as to how to go about making this happen, I see that it is a little complicated for a first deal however the contractor is great and giving me a good deal on the rehab.
Thank you for reading and any input, reading recommendations, or advice, or leads would be greatly appreciated.
