Private/Hard Money lending downpayment
Landlord is selling the 2 family NYC home we live in & the lady and I are trying to figure out how we can buy it to use as an owner occupied property. The house is in a neighborhood that is quickly growing in popularity & has enormous potential. The place needs work (new roof, windows & some interior upgrades) and is sold As Is. Although it is expensive (NYC), and can probably be reduced, it will unquestionably gain substantial equity with these improvements based on comparitive market analysis- much of which I can either do myself or have done with multiple contractor connections (my mother has 30 yrs property manager experience in nyc).
Wondering the possibility of using hard/private money to finance the 20% downpayment to avoid MIP, etc while we use our own resources to fund the renovations. Hoping to refinance to payback inital investors, who will gain the interest & points during this process.
They make money while being secured by the lien, our “skin in the game” is the renovation costs & labor, and we gain a permanent residence that we can replace rent costs with comparable mortgage, while renting out the other apartment & 2 parking spots. Based on current trends and similar local home prices, there is almost instant equity to be made and our growth risks are limited being in a convenient & growing NYC neighborhood.
Any thoughts concerns or suggestions would be greatly appreciated.