Did anyone use a hard money lender on their first rental?

[Account Closed]

I’m looking at Condos in my area in the $250k range, pulling $22.5k out of the 401k to buy, but was considering (if possible) a hard money lender for the other $40k (for 24 months) to avoid pmi (which is $270)

My Questions are:

Are there hard money lenders to stay away from?

How is it paid back?

Is 24 months even doable (and/or wise) for the amount I need (I see only 12 months advertised)

[Tarik Turner]

I am assuming you are using the 40k for a down payment. Most Hard money lenders are going to want 1st lien position and even if everything breaks right and a lender will take second position, a 40k loan amount is so small it eliminates a ton of options- An Asset based Lender at 75% to 80% LTV is your best option if you can not get conventional funding