Updated almost 7 years ago on . Most recent reply
Paying on a LOC or Loan With No Current Cash Flow
I'm new to rentals and fix & flips, and am currently just exploring my options, in terms of getting a loan or Line of Credit to help fund the purchase & renovation of future properties.
My question is, after being approved for a business LOC or a loan through a hard money lender, private investor, or something similar, how do you ensure payments are made back on the LOC/Loan, without having cash flow from the property? Is it better to buy higher for a property with little to no work needed, so cash flow can come in quicker? Or, is it better to buy lower for a property that needs more work, but cash flow is postponed until renovations are finished?
This is pretty much the only thing really holding me back from moving forward, as I don't want to get stuck in a situation where I have payments of $600+ a month, with no way to comfortably make them.