Rehab loan for investing property?

Question

There is an opportunity that presents ya itself to buy a home in a well desirable neighborhood walking distance to the beach with desirable rental income but does need to be a primary first. We were thinking staying remodeling and renting out after two years.
I’m new to investing and we would take a 203k loan out but is this smart the price is pretty high up maybe leaving 100k for renos

I’m wondering if I should jump or wait

Jenn Marino · Answer

This would be my first property, I don’t have Ann LLC should I? We would rather pay a lower IR. I’m open to suggestions though!

Eliott Elias · Answer

Why does it need to be a primary? There are other lending products that allow you to purchase in your LLC and borrow the rehab.

Mason Liu · Answer

Hey Jenn,

If the numbers pencil out, I would say why not. However, if planning on using a 203k loan, make sure you read up all the fine details on eligibility and how to work with a 203k loan. Definitely matters if you are planning to do the work yourself vs hiring a GC.

Rehab loan for investing property?

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