Quick question, not sure how to go about this. I use hard money loans to buy and hold then refinance, as well as fix and flip as the case may be.
I was presented with a deal, but not sure how to go about this.
ARV is $295,000
Purchase price is $185,000
Repair cost is $30,000.
I plan to fix and flip this property. However there is a tenant in the property till September 2019. Not sure how to go about this.
Do I get transactional funding to fund this, and then convert to 30-year mortgage after a month or so, and then hard money loan to fix and flip at the end of September?
Do I get hard money loan to finance this till September and then use another hard money to fix and flip at the end of September?
What are your thoughts ?
@Femi Ibrahim - Your post here was almost a month ago... Did you also post this elsewhere and get an answer? What did you end up doing? I've had a few situations where a tenant was present in a property that I was seeking to purchase, but always month-to-month, and I had the seller get the tenant out prior to closing. Even in a case where the tenant is on a long-term lease, I'd have the seller do "cash for keys" or something to deliver the property vacant upon closing. If not possible, then I'd expect a reduction in price to offset.
There was one case when I took a property with a tenant present and did the rehab around them, only because they were willing to immediately pay higher rent and they ultimately wanted to occupy both units of this duplex once the 2nd unit was finished. It made the project take FAR longer than would have otherwise been the case and I had to put them in a hotel at my expense for a full week on 3 different occasions.