Baltimore, MD · Member since 2017 · 24 posts · 13 votes
Hello. I have borrowed 130k to buy and rehab a property at an 11 percent interest rate (I only have to pay the monthly interest and closing fees) from a private lender. I expect the home to appraise at 170k-200k in 6 months when it’s fixed and rented out to nice grad students.
Will I potentially be stuck with this loan or will conventional banks be lining up because of the high AVR/loan ratio and rental income? My credits great and I have some reserve cash and 40K in rental income but I'm not working now. Thanks!
Without knowing all of your history, the only issue I potentially see is the fact that you're not working. I would find a lender (or a few) and run this by them. You can ask questions without them having to pull credit. If they tell you they want to see more income from you in order to refi out, you can course correct and find some sort of a job now while you still have a few months.