Got a deal that I’m buying from a family friend. Duplex for 225k. As is value before I put a penny into the property is 300k. It will not be a primary strictly investment. I have the 25% to put down on this property but I would like to use the instant equity I have toward my down payment. How is this doable? Thanks
Cash out refi or commercial line of credit as long as your DSCR (Debt Service Coverage Ratio) is satisfactory to the bank - this is typically ~1.20
@Bradley Miller , if you can find a Lender who will loan you 75% of your valuation (even if valid) in the first instance, rather than 75% of the agreed purchase price, kudos. Hang onto that Lender for all future bargain purchases.
But if you can't, at least you have the wherewithal to get it done, and get your deposit back again after seasoning. Good luck...
@Bradley Miller just as suggested above look for a lender that can offer 75% LTV on your property. Most Hard Money Lenders would be able to fund this transaction with minimal out of pocket costs (closing costs mostly). If this is a property in New York then try posting in the New York forum to see if any good locals can provide you some recommendations. You can even reference the city name for best results. Sounds like a great deal! Good luck!