Submitting an Offer for Primary Residence
Hey everyone,
I’m planning on submitting an offer on a 1300sqft 3br 1 bath house with a full basement and 1 car attatched garage. Also with .40 acre back yard. This house is in a town where the median purchase price is $232,000, 2 miles away from highway and a great schooling system.
The specifics of the purchase would be
Type of loan: Conventional 5% down
Listing Price: $119,900
ARV: $175,000
Offer Price: $86,250
Rehab total: $40,000
All in: $126,250
Equity gained: $48,750
I will be using a construction loan from a local credit union where I can act as my own contractor. I will rehab the property, refinance it and pull the equity out to repay the construction loan.
We are living in one of my 2br units now and will be adding to our family in a few months so we are planning on “BRRRRing” this property but living In it ourselves.
Let me know what you guys think! Sound plan? Any words of wisdom? Looking forward to it