Deal or no Deal & Can I BRRR with conventional loan

[Eric Villafana]

Good afternoon. I have my eye on and property in Texas. Details are below:

3bd 3bth 2k Sq ft

Bank Asking : 129k (it's an REO)

ARV : 155-160k

Repairs ~$10k

I'm thinking of offering $100K which would put me all in at $110k.

Its a buy and hold. Rents are $1250.

I'm using a conventional loan.

What are your thoughts. 

One other question I have is whether I can use the BRRR strategy using a conventional loan for initial aquisition. Anybody have experience with this?

[Nick C.]

If you buy with a conventional loan going in, you won't need to refinance it. You already have a loan in place. 

The terms you get with an initial purchase should be the same, if not better, as with the refinance. Unless you're doing it to pull out the $10k in repairs you put in if you get a higher appraisal? It doesn't seem worth all the extra closing costs to me...