Creative Loan for Rental Property
Newbie question.
So I have a family friend who is selling off about 5 of his rentals. I am going to get an FHA loan for my primary residence. But, I want to take this opportunity to buy at least 2 more. My question is, if I could get qualified for 2 more loans as for an investment property, could I use a hard money lender for the 20% down payment on each of the properties?
Say they were $100,000 each
HML = $40,000
$20,000 for unit 1
$20,000 for unit 2
Finance through conventional loan unit 1 $80,000
Finance through conventional loan unit 2 $80,000
I know the deal will be good enough to give me a significant cash flow, but how would I be able to use a hard money lender for this? Could I get the loan at 8% (just estimating the number) and pay the lender 8% each month of the rent and then when property sells, pay him his money back?
I just want to know what the best way to go about this is.