HELOC to purchase, how to get money out and long term finance?
Hello. We are getting ready to invest into a turn-key or a small rehab in the spring. It maybe local or maybe somewhere in the Cleveland area. For now we want to pay down some left over debt. We do have some cash and also a HELOC for close to $100,000. I'm trying to find a long term financing option that would let us pay off the HELOC after the seasoning period. So far it looks like conventional financing is out of the question. If we utilize the HELOC up to $80k I doubt any bank would be interested. Not to mention that our last two years tax returns are not very good at all. Our credit score is around 750 right now. Also, if we do decide to go with a rehab I will be doing most of the work myself with some help, so I will not be having any W2 income for the time being.
Do you guys have any ideas for financing? Preferably, we would like to get a 20 or a 30 year mortgage on the property that would still let us cashflow every month, and not haunt us with a balloon payment in 10 15 or 20 years. Is there such a product available from any buy and hold private money lenders? I saw some ads for them here but would like to hear your feedback before talking to anybody.