🧠 Creative Ideas for Financing Sub-$60K Rental Properties in Texas?

[Eduardo Cambil]

Hey everyone,

My business partner Rudy and I are actively buying niche rental properties in Texas, typically priced at or below $60,000. We're purchasing through our LLC with the intention to hold and rent — most of these homes can bring in $900–$1,200/month if furnished and cleaned up.

We're primarily targeting owner finance deals with 10% down, but here's where we're running into challenges:

• Most owner finance sellers want 10–12% interest over 10 years, which means payments of $700–$800/month — leaving us with no real cash flow

• Others offer balloon payments after 3–5 years, which adds risk and limits stability

• When we try to refinance with DSCR lenders, most either have minimum loan amounts of $150K (purchase) or $75K for refis — so our sub-$60K deals are often too small to qualify

💡 What we're looking for:
We’re hoping to find a way to finance these low-cost homes so we can structure 30-year terms (or something close), which would bring our payments down to $300/month or less — giving us at least $600/month in positive cash flow per property.

So I wanted to ask the group:

🔹 What strategies have you used for these types of deals?
🔹 Are there private lenders, seller-finance partners, or hybrid structures that have worked for you?
🔹 Is bundling several homes into one refinance deal a good idea?
🔹 Any experience with renegotiating seller finance terms to stretch the amortization?

We’re fully committed to this model and would love to connect with others doing creative low-cost investing like this. Happy to share notes or partner if it aligns.

Thanks so much for your insight and value!

[Chris Seveney]

Quote from @Eduardo Cambil:

Hey everyone,

My business partner Rudy and I are actively buying niche rental properties in Texas, typically priced at or below $60,000. We're purchasing through our LLC with the intention to hold and rent — most of these homes can bring in $900–$1,200/month if furnished and cleaned up.

We're primarily targeting owner finance deals with 10% down, but here's where we're running into challenges:

• Most owner finance sellers want 10–12% interest over 10 years, which means payments of $700–$800/month — leaving us with no real cash flow

• Others offer balloon payments after 3–5 years, which adds risk and limits stability

• When we try to refinance with DSCR lenders, most either have minimum loan amounts of $150K (purchase) or $75K for refis — so our sub-$60K deals are often too small to qualify

💡 What we're looking for:
We’re hoping to find a way to finance these low-cost homes so we can structure 30-year terms (or something close), which would bring our payments down to $300/month or less — giving us at least $600/month in positive cash flow per property.

So I wanted to ask the group:

🔹 What strategies have you used for these types of deals?
🔹 Are there private lenders, seller-finance partners, or hybrid structures that have worked for you?
🔹 Is bundling several homes into one refinance deal a good idea?
🔹 Any experience with renegotiating seller finance terms to stretch the amortization?

We’re fully committed to this model and would love to connect with others doing creative low-cost investing like this. Happy to share notes or partner if it aligns.

Thanks so much for your insight and value!

 We do not buy properties that low in value due to the issues you are running into. It will be difficult to find private lenders, and if you do they will be at 10%+ on interest so you are not going to be getting better deals than seller financing. 

Bundling into a portfolio maybe a local lender will do, but based again on asset pricing most likely will not be an institution.

You can try and stretch amortization but time is money and lower payments over longer period make it less enticing which is why sellers want there money faster.

One option would be to start a syndication and raise money from investors and pay them 8-10% interest only and use that to buy these - again not cheap money but you are not going to get 6-8% rates on something like this unfortunately.