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Brandon Davis
  • Roanoke, VA
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24
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Purchased House/flip, where to get money for rehab?

Brandon Davis
  • Roanoke, VA
Posted May 9 2016, 09:55

Hey Family,

I found the worst house in the best neighborhood 

Here are the specs: 

Price Listed: $149,000
Price Offered: $139,000
Price accepted: $140k plus closing costs.

My ARV is based on J Scott's formula.

After Rehab Value : 250,000 (conservative current market estimate) to 300,000 (prices are quickly rising in the area, and the market is forecast to be better in 12-24 months due to new companies entering my area.) 

I estimate that I will have to put $55k to $60k in the property. It is located in a historic district of town so there are some restrictions on what I can do to the exterior, which may actually save me money. 

I am using a VA loan for the mortgage and I plan on moving into the property for a year or so while the renovations get completed. It is in a livable condition.

I have never purchased a flip/house before and would like to narrow down some options for rehab money.

1) HELOC?
2) Hard money?
3) Construction loan?

What are your thoughts?

Please excuse my lack of terms/knowledge when it comes to this, as I am new. 

Thanks!

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