hey there BP community!
I am new to real estate investing and my true passion would be rehabbing to flip and rehab buy and hold. I love the aspect of distressed properties of working some magic to make a home go from ugly and inhabitable, to a place where a family would want to live.
So my question is, if I got say around 5k of my own money to work with. The property is up for sale for 47k ($20 square ft) 3 bd 1.5 ba and the value of the properties around this one are worth 110k-120k where could I get a loan other than an FHA 203k/streamlined to buy and rehab this property? Or would the FHA 203k be the best route? I have no access to investors yet as I am just strating out.
My intentions with this property is to be my primary residence and have my brother living with me to split the cost of monthly payments until I find a new property or I may just live in this one for a while.
I hopersonally this is good enough information and thank you for your thoughts and guidance!
I would say that the 203k loan is the best way for you. The local bank that I use has a rehab loan that works for me. It is for 6 months interest only. Then I will refinance into a 15 year conventional loan. Call your local banks and see what they offer. I would ignore the national banks.
@Scott green thank you for the advice. I was looking at a duplex recently as well and searching for financing through this. I found out to not use national banks as their deals don't particularly favor my desires. I have yet to talk to the smaller banks in my region, but I intend to do so!
From what I have read the FHA 203k can be tricky and it has a longer closing process not to mention all the requiring guidelines, but nonetheless it seemed like my best option.