I found a property that I really want to get (lets called H3) but I need some kind of strategy to get it and I can't think of the best way to do this. I want the house as an investment but I'm willing to do a 1031 with my main property if I can't find a better option in order to get it. Let me start with some of the numbers, the house is selling for $460,000 it has being in the market for some time and the current owner is not willing to do a long term option. The tax valuation of the house was $580,000 in 2016 so the owner is very aware that there is extra equity in the house, it was a rental but they don't want to deal with it anymore.
Now as for my situation and numbers:
1. My main house (lets called H1) is worth $435,000 but I still owe $380,000 so a line of credit is not an option.
2. I have a second property (lets called H2) that I'm rehabbing that I pay all cash for it and it should be ready to sell by next month at a resell value of $150,000
3. I also have excellent credit 800+
I don't have enough cash to do 20% down for this property (H3) until I sell property H2, but is there a way I can get a loan where I can put it all together and somehow come on top? I also think since there is at least $100K in equity in house H3, is there something I can do with that as part of the deal?
Do you want H3 as a hold or flip? If as a flip, maybe you could negotiate some sort of base and then percent of profit after expenses with the seller.
I want it as a hold.
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