What you are describing is difficult but not impossible. Three areas that are probably going to be an issue, the purchase price, and lack of experience and loan size. A home of that value would not sell for that little at auction in my area, if it does it is an indication it should be torn down. You indicated it needs rehab, but did not specify what type of auction, however, what you are describing is not something most homeowners have experience doing. Finally, loan size, permanent financing might be tricky, our minimum loan for example is $50,000. Home this is helpful.
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