Lending Options For First Time Investor
Hi BP,
I'm currently in the very beginning phase of how I should approach making an investment in real estate. My initial cash investment would be conservative so figuring out how that will limit my options for available properties and location in Philadelphia. My first task at hand is understanding possible lending options that would be available to me based on type of property and location.
The type of investment I'm looking to make is buy and hold. Pretty much following the BRRRR methodology.
I'm not looking for anything that would require major rehab (150-160k). Since I feel that my price point would be on the lower end, I feel that its inevitable some rehab will be required. I figured the conventional loan would be the way I will be going. However, my only issue is understanding how to receive enough through the loan if the property requires rehab? I assume the loan would be based on value of the property at its current condition rather than after repair value?
Any advice on the best place to start would be greatly appreciated!