Looking at a couple single family properties here in the Wichita area. This will be my first one. Trying to figure out how to fund the purchase and rehab. For example, one of these houses is 30k 3 bd 2 bath with great potential. Isn't trashed but will need things like floors paint landscaping. I want to pull the trigger but do not know how to go about it.
What is the total amount needed for Rehab?.Minimum deal for most private Lenders is within $50K anything lower than that you might find it a beat hard getting funding but not impossible.
I would look at a small banks and credit unions and see if they will give you a loan to also cover the rehab. Such as an fha 203
Get a real estimate of repairs because you just eye ball what the repairs are and their costs. What are you basing the budget out of? Often times you're just looking at surface level reno instead of what a GC opinion. They will be able to tell you things that are looming and would kill your budget.
Get an opinion of prices for rentals or resale price of an agent to see what's your highest and best use of the property.
Hello Andrew. Would love to discuss funding options with you. you are right about HMLs limits but depending on the amount of rehab you plan to do you can get pretty close to their our thresholds. local credit unions might be better but they will most likely want to collateralize something else or bring DTI into questions. Happy to discuss if you have time this week.
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