How to obtain financing under 75K

[Marie Rufty]

Good morning Bigger Pockets friends!

I am looking into purchasing an STR beach condo and am looking at properties between 60k and 100K. I spoke with my lender this morning and he advised that conventional mortgages may not be the way to go with this type of property because taxes and fees end up being a much larger percentage of the loan than is advisable. I'm wondering how you guys obtain financing for these lower-priced properties.

Thanks in advance!

Marie

[Myrtle Mike Thompson]

Hi Marie, not sure what market you're looking to buy in but thought I'd throw this out there.  I help investors purchase oceanfront units in the Myrtle Beach area and right now an offer at that price point with a financing contingency would get ignored.  Just about everything here under $150k is getting bid up by cash buyers and off the shelf within a week.  You might see if you can pull resources - maybe get a private loan - so you can make a cash offer.  Let the property season for 6 months and then pull the money back out with a cash-out refinance.  I did this with a unit I bought in March of this year... a cash offer was really the only way I was going to secure the property I wanted.