Updated almost 10 years ago on . Most recent reply
new to this need some advice on finacing
Hello I'm new to this and am looking to purchase my first rental property. I have found my first rental property which the sale price is 33k. the house appraises for 72k. this is a short sale property. I have the 20% to use as the down payment. The problem I have is my credit isn't the greatest no repos or foreclosure just slow pays. my debt to income is very low.
My intention is to purchase this house and hold it for 6 month then do a cash opt refinance and pull 10k in equity and purchase another rental and continue the process again. someone mentioned that a hard money lender may be a option. this would get me the house and then refi it and pay the lender their money back. is this true and if so how do i go about this and how credit heavy are these loans? I understand they are at a higher interest but it would be for 6 month til I can refi with a traditional loan. this house would be in St.Louis so if anyone knows anyone in the area that does this also would be appreciated. just needing this first start so i can start my portfolio, thanks shawn