Updated about 3 years ago on . Most recent reply
Ideas for financing on first property.
Hello all! My name is Will and I am in the Baltimore area. I am a new investor. I am getting ready to purchase my first property. It is the home of a family member, a 3/2 townhouse in the city, 896 sqft, and needs alot of work. Actually the city has considered it abandoned and there is a hearing in October to start the process of putting it up for auction. The family is selling it to me for 10k so the city won't take it. I've gotten a quote for the rehab of 35k for labor and 39k for material. Comps in the area are between 120k and 140k. I plan to buy and hold amd rent the place out. Rent is averaging 1500 a month. My question is .. can someone point me in the direction of lenders that will allow me to finance the sale price and the rehab costs? I have been unsuccessful with my local credit unions. Thanks in advance!
Most Popular Reply
203k/conventional Rehab Loans are great for owner occupied properties, but it sounds like you are going to rent this out. You should be seeking a local, reputable Hard Money Lender. Not only will they provide funding, but they will also serve as a second set of eyes on the deal because underwrite the PP/reno budget/ARV based on their investment experience (which is why you want someone local to Baltimore). Be prepared to pay 3-4 points and 12-14% on your first few HML deals. PM me if you'd like a few referrals.