Is BRRRR with short term owner financing viable?
Hey guys-
I'd greatly appreciate any input or considerations from experienced investors on the forum. I am buying my first BRRRR deal from a family member and they need a lump sum in the next 4 months. They would be open to doing short-term owner financing and my question is if this is viable within a 4-month window to do a BRRRR? The scope of work is pretty minimal for the property, so I am confident I can get the remodeling done within a 6 week period.
The deal details are as follows:
Purchase price $115,000
Remodel Cost $20,000 (Conservative)
ARV $185,000-$195,000
Potential Rent $1,250-$1,300
My original intention was to go the traditional route of utilizing a hard money lender for the purchase and refinancing into long-term financing after remodeling and renting the property out. I'd like to maximize my first deal anywhere I can, and my thought was maybe I can utilize seller financing instead of hard money to get this done. I am open to alternative suggestions on how this could maybe work as well. Again, any input or suggestions would be greatly appreciated!
Kurt