Newbie with access to family hard money lender. Need Advice!

[JORDAN GARCIA]

Hi BP!

Well after getting a raise at my current job, I decided against buying a nice car and want to get into my first investment property. I am 23 years old and currently make 30k a year with barely any bills. Paying off credit cards now so not much cash on hand but my step dad has recently come into a large amount of cash for his retirement and is looking to invest with hard money loans. 

He is willing to do me loans at 12% My credit rating is around 660 because of 50% credit usage which is getting paid down. I just need advice from some knowledgeable BPers on what routes I can go with my first venture. 

Talking to a friend thats somewhat knowledgeable in real estate investing, he says my only option with hard money loans in my situation is buying and flipping. I'm more interested in buying and holding. I was thinking about buying and holding already rented multi unit properties cash and refinancing with banks 6 months down the line. 

Will banks take me seriously if they see the properties are making profit every month? Living in south florida property prices for multi units are around 130k and up. Don't really want to burn up my FHA loan yet.

Any advice would be greatly appreciated! Really tired of driving a 2k beater for the past 3 years but willing to sacrifice for the future.

Thanks, Jordan

[Matthew Paul]

My advice to you is dont deal with family , pay off your credit cards first , build up cash reserves , keep driving the old car . Get you credit up , then buy your first house , fix it up while you live there , sell it when done , and do it again . As you gain experience and more money then you do more .