Thank you to all who read this in advance! Now my question follows..
I’ve done an extensive amount of research on how it works and I’ve got a great understanding of the basics I’m a new investor and I’m extremely eager to get my first deal underway. I live in the Philadelphia area and I found one of the ugliest houses on the nicest block! Area is full of rehabs and is going through a great deal of gentrification! Here is the deal as follows..
4bd 2.5 bath 2,800 sqft in the heart of the city of Philadelphia
$105,000 asking.
$389,000 ARV
$75,000 in repairs
Comps in the area are going for $579,000 and right next door sold for $420,000.
If my HML lends me at 65% ARV that’s $252,850 I only need $180,000 to purchase and renovate to bring the value to. It’s always a good idea to add a little “I.C.E” funds to your repair cost Incase anything goes unplanned. So i would want to throw in another $10,000 just to be on the safe side of things. That brings my total to $190,000 Which is very far below $252,000. My exit strategy is to fix and flip this is a very sought after hot area in the city of Philly, would a HML be willing to grant me this deal with none of my own money? That is literally the only thing worrying me, I don’t have the credit or funds to cover a 10–15% cost up front (skin in the game)I do know most HML will want points and other small various upfront cost I can come up with that.. but I would love to get a 100% financed deal under my belt, again this would be my first. With how I structured this deal is it possible to get 100% financed? Any advice or tips would be appreciated! Thank you all very much!!
