I am interested in a property that needs a rehab. I have a paid off property valued at $85,000+.
Is my best option to pull money out of the paid off property (currently rented) or should I learn more about hard money lending?
Property i am interested in numbers:
Purchase Price: $83,000
You need to run the numbers on both. Side by side. There are too many other factors.
I agree. This is a complicated "analysis."
First you have ot qualify...
Getting a loan on your current rental obviously changes your cash flow, for the long term. There is the cost for the loan and the associated closing...
Hard money loans have their costs and upfront points. But, at least the payments are interest only --- what is your cash flow situation? When you are done, just the new property will have a conventional loan (hard money loans are short term by definition).
You see, you wind up in two different positions at the end. Depends on what you want, what you are willing to pay for, what you are able to qualify for, your investing strategy and risk tolerance, etc.
@Justin Robert Thanks for the reply, understood. I will have to shop around and get some numbers.
@David M. Thank you for the reply David, I have attached the rental property report if it helps. From what I understand with yours and @Salvatore Lentini comment: it seems I might be interested in checking with local banks to check my
options on getting a LOC! - I am pretty un-familar with hard money lending and need to study up a bit more on it.