Rural fix and flip, comps are 10 miles away

[Rob Austin]

I'm under contract for a triplex in Boonville Indiana, the purchase price is $192,000, the arv is $280,000 and will need $20,000 in renovations.

Looking for a lender who can do "rural" fix and flip (hold for air bnb or long term). I don't feel like it's rural, but I'm being told that it is because the comps are 10 miles away.

Needs to be 90% LTV.

Any ideas?

[Miranda Holland]

Quote from @Rob Austin:

I'm under contract for a triplex in Boonville Indiana, the purchase price is $192,000, the arv is $280,000 and will need $20,000 in renovations.

Looking for a lender who can do "rural" fix and flip (hold for air bnb or long term). I don't feel like it's rural, but I'm being told that it is because the comps are 10 miles away.

Needs to be 90% LTV.

Any ideas?

I’ve encountered similar situations where comps were further away, and it can indeed be challenging to find lenders who are comfortable with that. When working with rural properties, some lenders might still consider the deal if the comps are strong, even if they're a bit farther away.

Sometimes it's beneficial to gather as much data as possible about the area, including any local developments or attractions that might support the ARV.

If you have a local lender or a smaller bank that understands the area, they might be more flexible with rural properties.