Newbie House Buyer/House hacker

[Sho Firecomm]

Is it a good idea to purchase a 230k property with a Hard Money Lender? This is my first home purchase in which I already have a tenant (family member) set up.

The house doesn't need any work, but I am really wanting to throw myself in the process of buying a home and go through the live and flip process.

Because I live by 1099's it will take too long to get a traditional mortgage, so I was thinking about approaching a Hard Money lender.

This is all in Phoenix Arizona.

Your thoughts are appreciated!

Joe

[David Martin]

@Sho Firecomm No shade man, but you have me so confused... how are you "really wanting to throw myself in the process of buying a home and go through the live and flip process" on a house that you say doesn't need any work? What's there to flip or rehab?

Related to your question... I think you're too much at risk with a house with no (known to us) opportunities to rapidly increase it's value to cover an LTV spread when it comes time to refinance out of that hard money, so you're either going to bleed slowly to death on paying interest to hard money that you can't get out of, because you can't get anyone to refi, or you're going to end up having to hustle extremely (read this as take on another job or two) to pay that thing down until you're in that range to refinance. Your only saving grace in this scenario is if appreciation in your area is going up insanely fast, like 20% a year or something. Cheap money > Easy Money