Hard money and buy/hold?

[Chris Stromdahl]

A friend of mine has used hard money for flip purposes and I am considering using it for buy/hold.

My wife and I own two rental properties in the Tacoma, WA area. Both of which have been purchased through conventional loans with 15% down. They are performing well.

Is using hard money for buy/hold purposes something I should consider?

What are the pros/cons that I should consider?

The way we look at it, if hard money can enable us to purchase additional properties more easily or with less of our own cash, then it can make sense.

At this time we are actively looking for our third buy/hold. We have more than enough for the 15% down payment using another conventional loan, but if hard money can help these dollars go further then we are interested in pursuing it.

Thanks, Chris

[Jay Hinrichs]

hard money is short term money... and expensive.. not intended for periods of over a year .. interest and points will kill any cash flow investment.  stick to what your doing.