Rehab Loan vs Hard Money
This deal is considered a heavy rehab bc my rehab budget is more than purchase price. My dilemma is should I purchase the property outright and then get a rehab loan or go for hard money to get purchase and rehab funds? I can buy it outright and close the transaction to get seller out the way. This is a tax lien purchase and I want to pounce on the opportunity and not wait.
Purchase price is $25k and rehab coming in just north of $75k. I've learned lenders tend to shy away from these deals if rehab is more than purchase as they call it a "heavy rehab". Would this change things if I purchase the property and own it outright? Then I'd only need rehab funds. I'd love to learn strategies here from someone. Which of these would be easier to fund?