Single Family rental

7 Replies

Hello All

I am currently looking to purchase a single family home in NJ to buy and hold as a rental. The property is selling for $185,000. My wife and I have two very good incomes and great credit scores. I would like to use the BRRR strategy and put 0 money down.

What are my finance options? I do not have a private lender so is my best option is a hard money lender?

Thank you in advance for you help

Without experience, it's very difficult to get 100% financing from a hard money lender, unless the deal is a home run. Expect to need 10% - 20% down for your first deal.

Thank you! What options do you suggest for a property that needs some rehab 

Hard money is for a short period of time so is better suited for a flip than buy and hold. IMHO.

For a BRRRR, you'll need cash up front. I closed on a BRRRR about 2 weeks ago and between closing and up from first payment to my contractor (hard mo e.g. lenders reimburse Reno costs, rarely pay up front) it's cost me $30k, and that's for a $55k house. You can get that cash in a number of ways..... personal loan, loan from friends/family, home equity loan, 401k loan, etc.... That's why they call it "creative" financing, you have to think outside the box a little sometimes to get the deal done. If you have the drive and you have the deal, you'll find a way to do it. Good luck!!!

he could use hard money (most cases 90% ltc) and then refi after 90 days to long term financing.

In order to get no money down it would have to be an amazing deal, and even then the lender is going to want to see some experience. If neither, you may find a HML that’s brand new; willing to find any good Deal, but maybe that experience won’t be a great one.

Expect to pay something.

Originally posted by @Paul Papamarkos :

Hello All

I am currently looking to purchase a single family home in NJ to buy and hold as a rental. The property is selling for $185,000. My wife and I have two very good incomes and great credit scores. I would like to use the BRRR strategy and put 0 money down.

What are my finance options? I do not have a private lender so is my best option is a hard money lender?

Thank you in advance for you help

After purchase, how much extra work (money) does it need to bring up to ARV standard? And what IS its ARV?

Unless comps are ALREADY going for MORE than $270k, you've got no business paying more than $185k all-in, if you're trying to get into the BRRRR strategy. You can guess why, right?

Also, if you're still looking for deals in six months time - you'd BETTER have saved up PLENTY in the meantime! Cheers...

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