Rehab money

[Ty Monroe]

Where do you get money for fixing a house if something is wrong? I haven't purchased my first property yet, so even coming up with the down payment will be a challenge. I wish to house hack if that helps.

[Kyle Scofield]

@Ty Monroe you get money to rehab the same way you do to purchase the property. Saving your personal money, private loans, hard money, etc.. 203k rehab loans are a good idea if you plan on going the FHA loan route.

Let me know if there's any thing else or further questions you have!

[Gary Montgomery]

You could also use home equity money if it's available, and smaller community banks tend to like to lend to investors who are improving the local community.

[Andrew Syrios]

We usually get it from our own reserves or from private loans (mom and pop types that lend to us at 8-9% interest only with no points). If you don't have the savings, I would look for either a private loan or a partner to fund the rehab.

[Julie L.]

I agree with the prior responses.  It is also true that --

Savings is Murphy repellent

When buying a house, whether for your personal residence or as an investment, having a fair amount of savings will save you from headaches.  Life happens and when it does it requires money. 

Work, learn and save.  When you have a bit set aside it's time to get into the game.