Pros/cons of a conventional loan to buy a flip?
After buying a few properties with my own money and no financing I have only been able to go after the little fish 30-50K range homes. Looking into getting an investor loan through my bank and take the money that I have built up to go after ones in the 60-90K range. The way I see it, if the bank is giving me another mortgage on an investment property for 45K I would just make up the difference in my own money and use the rest for rehab. Example a home for 75K I would have to put in 35K of my own money leaving me roughly 30K for repairs. Since this would be something new to me I am not quite sure of the pros and cons to this. I already have a mortgage from the bank on my rental property that I bought last year. So I was figuring perhaps I could do the same with buying a home to fix up. Grant it, it would have to appraise, but the homes in the upper range are mostly cosmetic fixes and updating for a quick turn around. Any ideas or suggestions? Would this be a good route to go?