High interest rate for investment property

[James S Tomaszewski]

Hey all!

I'm looking to buy my first property right now and put in an offer for 440K on a 2b2b in Joshua Tree, CA. The offer was accepted and, LONGG story short, my mortgage officer pre-approved me for the wrong type of loan. Because I am self-employed, the correct loan I qualify for (3 month bank statement loan) is 5.37% interest and requires 30% down. 

I can pull the cash out of my crypto investments, though it is about half of my portfolio. The place needs work and I plan on putting about $60k in renovations in the property and, with the location and 5 acres of land, I believe the renovations will increase the value quite a bit, which I will then be able to refinance with my lender in 2021. I will also turn the property into an AirBNB in the next year and am almost certain the revenue will pay for the mortgage and then some. 

The only thing is, in the next year or so I will likely qualify for a better rate than 5.37%. 

I'm looking for some insight into whether I should take this opportunity and ride with it (like I said, I think the location and land with this property is priceless- the house just needs work) OR if the loan rate is just ridiculous and doesn't make sense to take on right now with rates so low for conventional mortgages.

Thank you!

[Jason Hirko]

@James S Tomaszewski buy the place with a low down payment hard money loan, do the rehab, force equity, and then refinance at the new higher value of your rehabbed home. Keep more (if not all) of that crypto portfolio working for you. Don't trip over dollars to pick up nickels!