Borrowing Money From Friend Then Refinancing

[Donald Telfair]

I have a friend that is willing to let me borrow a 100% of the investment property cost. We agreed upon 6% interest rate. I have to pay them back within a 12 to 18 months. This property will be a long term rental. The property cost a 114K and value of the house is about 130K. The house has a tenant with a lease in place. What are some options I have to pay them back? I know a cash out refi will be unlikely because of the value of the house. I am considering trying to get the house for 100K. Also the house will probably need a new roof.

[Chris Seveney]

@Donald Telfair

If you do not have an exit then I don’t recommend buying the property and taking the $100k. Especially if you cannot refinance and that is your only option