Best strategy for financing SFH opportunity in Dallas
I have an opportunity to purchase a SFH in Dallas. This would be my first purchase of an "investment" property, i don't currently own any properties. The house is currently occupied by my father and I would be being purchased directly from the owner (his ex) who has agreed to $120K to let it go. The amount remaining on the mortgage is $80K. The house appraises at around $325K (conservatively) and the deal can be done right now.
I intend to purchase the house and have my father continue to live there and minimally cover all the costs. I am not looking to purchase this property for nay real cash flow, but do intend to leverage the equity in the house to help finance future investments. I am trying to figure out the best strategy for financing this purchase and end up at the end with as low interest conventional loan as possible with the least amount of cash into the deal. I am really looking for what the best strategy might be so i can do my research down the correct path.
I have no cash available to put down, but could pull short term money from lines of credit or friends.
My wife and I make combined $200K+ W2 with credit scores at/over 800. We both have been in our current jobs for 4 or 5 years and i've been in my industry for over 20. I do have a personal loan with $75k remaining (2 years into a 5 year loan). Did do a short sale back in 2011 but other than that nothing on my credit.
My dad will be living in the house (he has his own income and will be paying rent).
Looking for advice on:
* Initial purchase of the house. Traditional loan, hard money
* refinance so i have no cash in the deal
* Can i finance the house as a primary residence since my dad is living there and i have no other property? If not it would be an investment loan? What are my best finance/rental property options here for cost and taxes (both for me and some consideration for my dad).
I am ready to start talking to lenders, but really want to see what the best approach is.
Thanks,
Peter