Has anyone ever heard of obtaining beat up property and re-habbing with grant money? I’ve got a double down the road from me that has some water infiltration. I’m positive no one will offer a dime on the place and thought I could negotiate some sort of deal with the city in agreement for renting to section 8. It’s currently HUD owned.
The only way to make the deal work would be to get it for almost free. Either that, or the city will need to tear it down in a couple years.
ARV would run around $150k. Rents would run around $800/unit. Rehab would probably run around $50-80k.
I hope someone has some input/direction. Thanks!!!
hi, I’m gonna be straight foward. it is probably impossible to get money to do a rehab from the government, what most people dont realize is that most of the ‘money to start a new business’ from a grant is specifically for non-profit organizations and that most (80-90%) of the money for grants are for medicaid, ssi, welfare… and do not apply to every day, working individuals.
I agree with cubencis. This, being a capitalist country, surely is not friendly to people trying to build capital. The money that the government does have available for rehab is set up for owner occupants. If you tell the government that you are trying to do it to take a house that is a blight on the neighborhood and fix it up so a “nice family” can move into it, they are not concerned with that.
I don’t know if the HUD 203K program applies to what you’re looking to do, but check out this URL:
http://www.hud.gov/offices/hsg/sfh/203k/203kabou.cfm
Firstly, the 203k program would only work if this was a owner occupied transaction.
If you are asking “can I get a grant to subsidize the entire project”; the answer is no (financing, whether it be conventional or private will be necessary evil).
Grants usually come in the form of down payment and or closing cost assistance, and these types of DPA grants can be secured on either investor and primary residences.
Regards,
Scott Miller
In San Diego, you can get simple interest, low interest loans for rehabbing in some of the redevelopment areas. They do, however, put deed restrictions on your property while you own it.
Check with your city to see if they something similar going on.