Hello, in 2017 I sold my small farm to travel the country in a RV for a few years. With the farm money I bought 2 quads in TN for 125K each in TN. Now I'm back and am doing hard money 5% 30 year fixed cash - out refinance on one of the quads for $105 or more since the appraisal came back higher than I originally thought. The appraisal came back at 210K each. Due to a crappy PM the past few years I need to put in 10-15K each for repairs etc, and up the rents to market value. The reason I wanted to get a loan.
I found a duplex that I would like to house hack. Asking is 95K. It just came back on the market after pending, because the buyers had a contingent on the inspection. So they backed out. I'm trying to find out what the report said. So, I would like to buy this, and turn the upstairs into a STR, the area does support this, its very touristy and I researched Airbnb, etc. On Deal Check very conservatively, I can expect to clear around $375 a month, after mortgage, expenses, etc.
So my question is how to buy this? Do I get max cash out with my hard money loan to buy this cash? I don't know what the repairs are yet. I will explore seller financing also. It looks like I have a bit of leverage since it just fell out of contract.
Do I try to get a regular bank loan? Ive always been self employed, so I don't make anything on my tax returns. In fact I'm still negative from carry over from 2009, real estate crash, I think that drops this year.
Please help and Thanks!!!
Hey @Tammi Bieniek I might consider doing antother private money cash out refi on your other rental property to get the needed funds here. Then buy the deal cash. The reason for this is beacause the private money lenders I work with do not allow borrowers to live in the propeties. So house hacking would not be possible. I also only have one lender that will do STR's in general. If you refi your other property you may be able to buy this deal cash and at that point do whatever you want with it.
Hope this helps