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.
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.
And I guess I would need an existing mortgage in order to get a HELOC? They don't base it off of ARV.