Using private financing to help fund an owner-occupied multi-unit
Hello everyone.
I have been learning about financing, and how to get started in REI. My husband is 2 years out from University, and I earn a decent living as a recruiter in Canada. I'm contemplating doing a BRRR, but I live in Calgary, and it's not only very expensive, but we're suffering from a big downtown because of oil prices. Vacancy is very high right now, and I anticipate a slow recovery.
I don't know anything about flipping, but I like the idea of buying a 4-plex, living in it while I hire family/contractors to update all 4 units, and then continue living in it until we can afford buying a house on top of the 4-plex.
My question is, how would it work to use private money to assist with a large down payment and repairs costs, while using it for an owner-occupied home? I would likely refinance it one/ a few years later to get the money back out and repay the private lender. Also, would the bank know, and factor in, the fact that a portion of the down payment would be a private loan?
ALSO, frankly, I'm pretty scared that all hell will break loose, and I have 2 tenants move out and I lose my job down the road, all while being responsible to pay a big mortgage (hence why I'm okay to wait for all this until my husband is working too).
Keep in mind I cannot lock the interest rate in for 30 years like you American's can. We get a new rate every 5 years maximum. Also, mortgage interest isn't deductible in Canada.