I would guess that if the seller is taking a second, that he would have some say in the amount of your first mortgage. You should discuss it with the seller first, you are expecting him to move his second position back by $16k. Also a hard money lender for $54k will put you into a negative cash flow. Did you consider this?
Mortgage money for the new $38K 1st is not a problem, but I’m looking for a hard money lender, or a creative solution to cash out at close. I’d like to max out at $54K on the 1st, if possible.
Any hard money lenders in Northern Virginia for this deal? Any creative suggestions also welcome.
How about creating a note for the whole deal? You can possibly negotiate a lower price with the owners by offering all their money NOW instead of being paid over long years. Your payments, with taxes, would be $704/month and you would own it outright. Positive cash flow and no balloon at the end. Sorry, but ‘maxing out on the $54,000’ is a dream, unless you intend to sell it right away. In that case, why not sell your contract with the owners by offering owner financing to someone else, again with a note, and cashing out?