I may have a deal need help to stucture,
SFR in Ohio asking $40,000 FMV $80,000
how should I obtain financing and is there a way to walk away with cash?
My credit score just took a hit but its still 701
how would you handle this deal?
What’s the end result of this property? Rental? Flip?
The ideal would be to flip.
Flipping is a good idea if you have the money for repairs.
Wholesaling would be a good way to makea smaller amount of cash, but you’d still get something over nothing
Are you indicating that there is an after repair value of $80,000?
Is so what are the cost to cure amounts? 10k , 20k?
If you are looking at 20k and you want to fix and flip, crunch the numbers.
40,000 purchase
20,000 rehab costs
5,000 holding costs - interest on loan/insur,etc.
5,000 realtor commission
10,000 potential profit if you 80k is accurate.
Double and triple check your numbers!
Jeff Knize,CRA, ICAP member