Seeking Financing for A House Hack!

[Dalton Dellinger]

Hello BiggerPockets Community!

I would like to start with an introduction. My name is John "Dalton" Dellinger. I am a 24 year-old investor out of Southwestern Indiana. I work at a huge Toyota factory in the area in the Skilled Maintenance trade. Starting in July of 2017, I read everything I could get my hands on and listened to AT LEAST 500 podcasts. I continue to listen to the BP podcasts every week!

I bought my first duplex in November of 2017 to house-hack and have been living for +$423 a month (downstairs rents for $1000 and mortgage is $587) since March 2018. I acquire this property through an FHA loan through a local credit union.

In February of 2018 I bought a single-family house around the corner from my duplex. It has a positive cash flow (including vacancy, maintenance, cap ex, PITI) of about $150 per month. I acquired this property through traditional financing.

I just closed on a fourplex in August 2018 in Evansville, IN. Once renovations are complete, it will bring in approximately $481 in cash flow. I found this property on Facebook and secured a land contract from an investment group out of California.

I am now looking to acquire another property as a House-Hack in the same city as my duplex and single family. I am talking to a lender about getting a 203k loan, but I would prefer to have Private Financing if I can get it.

The property is 2 stories with a full basement. The current livable area is 2,554 sq ft. This includes 3 bedrooms, 2 full baths. Extra rooms include a dining room, living room, and home office. The basement is an additional 1277 sq ft with multiple rooms and a half bath, and it has a separate entrance for the basement. I plan on putting new flooring in, repairing the ceiling, and adding a corner shower to make it a full bath. Once the renovations in the basement are complete I would like to put a latch on the door to the basement and rent it out for approximately 550-600 a month (with utilities being included, this is very marketable.)

I would have multiple exit strategies with this property. I could do a BRRRR method and pay my lenders back, keeping the property as a duplex and receiving cash flow every month. I could take the latch off and roll the property into a 1031 Exchange and put a down payment for a larger property. Or I could live in it for 2 years to avoid the capital gains tax.

I am looking for private lenders to finance 95% of the costs, (purchase price plus rehab costs). I have more pictures and can give plenty more information for the deal. The realtor I am working with said that I need to have financing established before he can even submit an offer. I would like to get the property under contract for $60-$65k. The ARV is approximately $130k in my area and will require an estimated $30k in rehab costs. If anyone is interested in doing this deal with me feel free to message me on here or I can give you my email upon request. Thank you all so much for the information posted on BP and I look forward to working with one of you!