I have a property given to me by my father. Its free and clear but has been condemned by the city. It's estimated to be worth 35k "as is". The property is in an area that is being heavily revitalized and very popular. It would be worth 150-160k ARV possibly more. Needs about 50k in repairs. I don't have much cash of my own and will need a HML to fund the rehab. Are funds given to you up front or as the work is completed And how much money down if any is usually required?
What kind of questions should I ask contractors?
You could also get an FHA 403? Rehab loan. You don’t have to be buying to get one...not sure about the condemned part. May even cost less to finance a new build with a traditional lender than to do major rehab with hard money.
An FHA203(k) loan is always a viable option, however, keep in mind that this type of loan is best for owner-occupied properties. The FHA203(k) loan isn't sufficient if you're fixing up the property as an investment property. In that case, you will need to explore other options such as an HML or private lenders.
The flip will be done as an investment.