Funding for a new rental property

[Mark Rogozinski]

Hello all......I am about to make my FIRST offer on a killer DEAL for a home to use as a rental property in PA.  I have been to the property twice so far and I can get this property for under $10,000....The owner and brother are tired of having it...father died several years ago and they just want to unload it.  I am a contractor with over 25 years experience...so I know what needs to be done.   I estimate I would need around 25,000 - 30,000 for purchase and rehab costs.....How do I fund this?  We have some cash towards home but---what financing would be our best bet...Broker...203K...???  Credit score over 760...Thanks in advance

[Darrell Shepherd]

Hard to do loans under $50k anywhere but a local bank or private lender, the mortgage companies and hard money guys wont do the work for what they can make on the loan.

Best bet on something that small is to secure it with something else, like a HELOC or credit card. If you dont have those assets, find someone with that in a retirement or saving account and pay them high interest for a year until the house is kicking of cash and in good shape, then you can borrow against the house.