Exit strategy advice
Hey all,
Just curious to see if anyone can validate this exit strategy for a wholesale deal. First off this is purely an example and all of the numbers I use are just for illustrative purposes.
So if I were to get a house under contract for let's say 50k and it rehabbed for 25k would this work? I get financing through a hard money lender and renovate the property up to rental quality and then rent it out. The ARV is now 100k. Could I get a traditional lender to finance the property at 70%LTV? If so would that be done without money down on the refinance?
So in essence I wouldn't have to put any money into the deal considering the rental income would pay the hard money lender until it was refinanced.
Is this something that can be done or is done commonly among buy and hold investors? My goal this year is to do one wholesale, one flip, and aquire one rental property.