I am closing on a property at the end of this month and already looking into my next investment. There is a foreclosure I am interested in, listed at $200,000 in Minneapolis however the unpaid loan balance is much lower. Because my first investment is a house hack and I have an FHA loan my next investment I will need to be more creative with financing. I would like to make an offer for just over the loan balance since I will have limited funds for a down payment after closing this month. My questions are...
1) Are there lenders willing to borrow $80,000-130,000for a house that will likely need rehab. What type of down payment will I need... hoping for less then $10,000.
2) The rehab process is new to me but I am willing to put in the work for a good investment. I need resources in Minneapolis. Any recommendations?
@Shanna Barnes congrats on your upcoming purchase.
1 - Yes but under $10k will be near impossible. I would talk to @Tim Swierczek to see if he has any options available, off the top of my head your only opportunity may be a hard money lender or private lender.
2 - What type of resources are you looking for?
I haven’t looked into resources at this point. My family/ friend are not good options. Saving may be my only option at this point.
Is 20% down on at private/ hard money lender what I should expect in your opinion?
@Shanna Barnes undefined you can put as little as 15% with conventional investment loans, or you could buy it with a conventional loan and move into it. If it's a SFH at $200,000 it's going to be hard to BRRRR and cashflow after in Minneapolis. I've seen them go wrong before and really just be a breakeven affair.
PM me if you want to see a BRRR project in process. I've done a couple dozen renovations and often share what I do so people can learn
@Bruce Runn thanks for the offer. We could get coffe and talk next week if you have the time.