Owner held note, with 30k out of my pocket and rehab fees

[Keenan Patton]

So I have a deal I the CA foothills. The owner (which also happens to be my grandmother) has a property with 2 houses on it and an apartment above one of the garages. She is willing to hold the note for the remainder of the morgage. Remainder being about 375000. All I need out of pocket is 30,000 and probably about 50,000 for upgrade.

I do not have that cash on hand or even close at the moment. But I think its a good enough cash flow that I need to find out how to get the extra cash. I'm willing to do creative financing obviously but wonder if a hard money lone for the remainder would be best with the brrrr method on a 18 month loan, interest only, if I can find it. 

The note is 2500 a month including taxes and insurance. One house can rent for about 1950, the other house about 1800 and the apartment about 900. So conservatively I could gross 4500 a month. In guessing if a get the hard money ill pay an extra 1000 over the note so a cash flow of 1000 a month.

I haven't done hard money before so I'm a little leery. What does everyone think? 

[Dennis M.]

Grandma will lose her properties and you will lose your shirt . Way too much on the line to be using a short term hard money lender imho