Updated almost 4 years ago on .
Looking for Creative Private Money for a future House Hack
I've got a property I'm waiting to hit the market to use as a house hack using the BRRR method. The property is 3 units, 2 buildings with front building (2 units), and back property in-law house. Its a HUD property and they just had work done on it last month. I'm looking for a private lender willing to lend at a reasonable interest rate with a relatively short-term balloon (up to 1 year). I currently doing a flip so money is tied up. I'm not sure when it will hit the market but I anticipate around Jan/Feb 2022. I'm willing to put skin in the game (earnest money) but need funds for acquisition and rehab.
I'm not expecting 2-3% but I'm also not going to pay 10-12%. We are just exploring some more creative options.
I'm not sure what HUD would list property for. ARV is 300-310k. The property was sitting for 8 years. The property needs updating. HUD had contractors to install new furnace and water heater for each unit, replaced roof on both properties, new gutters on property in back, repairs on porch and exterior railings, and replace some windows. I would prefer a lender comfortable with early repayment.
The multi-family down the street sold for 300k in April.
Offering a First position lien. I'm okay with a QC deed being held in reserve as well.
Please PM me for more details or to discuss further.