So I bought my first house in June using a private money lender ive been making interest only payments. I am finished with the rehab and wasnt sure if I wanted to sell or refinance and rent. Problem is I have had gaps in my employment. but I only owe 1/3 of the appraisal of the house but i would like to get money from refinance to try and purchase another property while i have cash flow coming in off the rental i need some advice on ways to refinance because I talked to a guy a few months back and I didnt qualify he said...any ideas?
@Patrick Sanders If you don't currently qualify for a conventional mortgage you may have to consider private or hard money again. If you have 66% equity in your current property, consider taking 30% of the equity out and applying it to a 2nd home by having the same lender fund both deals. This way you get to spread your equity between two properties and the lender gets to fund two deals. I would suggest you look for a private lender that is comfortable lending 3-5 years so you can work on establishing your employment history. I would also ask that there be no prepayment penalty so that as soon as you qualify, you can refi without getting hit with a big penalty.