Would someone be able to help me figure if Hard Money is my best bet for a buy and hold with the intent of using the BRRR Strategy? I have a hml who will cover 100% purchase and rehab and closing at a 12% Interest rate 5 points on a 9 month term interest only payment 1st of every month. I also plan on section 8 both floors. its a duplex first floor 1 bed 1 bath, second floor 2 bed 1 bath, 1575 sq foot property.
Purchase price: 55k
Repair Cost: 20k
Projected ARV: 100-110k
Expected Rent: 1750/mo
With a predicted 75% refinance value coming in at $82-85k
I do not have the money or private money to help me do a conventional loan. I already own a home and am just starting out in real estate investment.
I would say that if you know you can't get a conventional loan on it then looking at the hard money is a solution. If you want you could try to go for a FHA and you live in one while you fix the other and then fix the one you are in while you are waiting the year you will need to refinance.
Just food for thought.
@Michelle I would have used that but my girlfriend and I currently have a home and a baby so I couldn’t use that. Im new to the game I wish I knew about all this before hand.