I bought a duplex with a FHA loan last year. Upgraded the property and now ready to rent. Cash flow will be about $500-$600 per month. Looking to purchase my second property. Wasn't approved for a mortgage for a second home. Does this mean I have to purchase my second property as an investment property? Any creative options?
Are you looking to buy another investment property? You just can't use another FHA until you refinance out of your current FHA loan.
@Rosaria Pipitone This is a good example of when investors start looking at the BRRRR model utilizating hard money. They use hard money to purchase the investment property, renovate, and then get it rented out. At that point you have a fixed up cash flowing property that you can refinance either through a more traditional commercial lender or a longer term hard money rental loan. They won't be as cheap as the residential mortgages though.
@Nick Riccio yes, I’m looking to buy an investment property with a mother in law suite so I can house hack.
@Chris Teti thank you! I didn’t even consider hard money lenders as an option. Not sure why. Just started my research on local lenders