Why are you having a hard time getting a loan from a bank? If you have nothing to bring to the deal other than desire I would reconsider getting into real estate or at lease waiting until you have money or skills that would warrant such a move.
If the analysis makes sense, I do not see why not. Just calculate up to 1-year term since you might not be able to refi at the 6-month mark.
Consider asking for owner financing. They might consider spreading out there income. if they need some cash,coffee them teio notes with one due prior to the other which will lower your debt service. You might consider a cash rich Partner. There is also Private Money Lenders that may be short term or long term. Good luck!
@David Garzon do you think you can get 20% equity within 6-12 months timeframe? Bank will need to see a consolidated Income Statement to make sure the DSCR is enough.
The HMLs in my area still require the "risky" borrows have some skin in the game. The ones in my area are still requiring new investors to put at least 20% of the purchase price in. I would try really hard to find a bank that will loan to you on your own instead of a HML if possible. To re-fi, you will need to make sure you will have enough equity to be able to actually pay off your HML. If you are buying at ARV, you may end up leaving a lot of money on the table.
Have you talked to a mortgage broker that specializes in working with self-employed professionals? You may be able to qualify for an FHA loan if you have decent credit and can show that your income is moderately steady. You may also consider looking into a part time W-2 job for a few months to "stabilize" your income and make you a little more bankable.
hard money is short term and expensive. if you don't have a solid exit plan you might find hard money might be difficult to get also. If the property value drops you could be caught up in something you can't manage. Me personally. I would get a second "JOB" and get qualified for a conventional loan. The money you earn with the second job and the money you save on hard $$ costs, could be a down payment for another property later on down the line. You can always quit the second job once the escrow is complete.
There are hard money lenders who specialize in long term bank-type financing with lower interest rates than short term bridge loan or rehab loans. If you are having trouble getting a bank loan or don't want to use a bank for some reason, that is one good option for you.
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