I have a condo in a good part of San Diego that was originally listed for $160k then dropped to $140k. It is a bank owned property and needs a complete remodel which I think I can do for $20 to $25k. I would like to start with an offer of $90k then go up to no more than $100k. Comps in the same community going back through the beginning of '08 have gone for $155 to $175 on average and this one would be a prime condo in the complex especially after the makeover and I feel it would easily fetch $165 to $175, possibly more.
Now on to my problem, I am currently unemployed and my fico is only around 650 so a regular bank loan is out of the question. I was thinking about putting a marketing package together and going after a private or hard money lender offering an oppurtunity to get back 15% for a $130k loan with a balloon payment due in 6 months. With that money I would purchase the property and flip it. I think I could complete all the repairs in less than a months time.
First, do you guys think someone would be interested in that kind of deal and what would happen at the end of the six months time if God forbid it didn’t sell? Would refinincing through a bank be an option as there would be room to rent it as the rents are high in the area? Is there another way of going after this property that I haven’t though of? BTW, I am a first time investor.