Should I 203K or BRRRR?
Hello BP,
I have years of experience wholesaling properties for investors to flip or rent. They usually use hard money or cash to purchase their homes. I am now under contract to buy my first home where I will be living in and renting out the spare rooms. I found this house off the market at a steal of a price. The cool thing about this house is that their are 2 houses on this one lot. The 1st house is a 3/2 (Main house) and the 2nd house is a 2/1 (Spare house with living room and kitchen). The home appears that ,as is, it will not pass an inspection from a mortgage bank because it is missing the railing around the front porch. Also the 2nd house has an addition built to be a closet for a bedroom that is held up by two metal support beams but it still slopes and feels as if you could break through the floor if you jump on it hard enough.
I am under contract for 104K and the home should appraise for 130K as is. After Repair Value is 250K. 2/1's rent for 800/ month as well.
My question to you all is do you think I can get a 203K loan to buy this house and fix the issues or do I have to get a hard money loan to fix it all up then refinance later? (I really don't want to have to wait 6 months in a Hard money loan to finish seasoning). Please Help BP!