Buy now on loan or Buy later with cash?

Question

So I am able to save around 7K/month. Most of that goes into stocks right now but I have decided to look at SFRs (I own a few duplexes). I only have about 10k in savings and was wondering if I should wait 3-4 months to purchase a 40k SFR cash or should I try to seek out private/hard money? (Conventional is out since I have less than stellar credit, around 690 due to a job loss in 2010 and getting behind on bills).

No issue on income, No issue on DTI, Just a less than stellar credit score. Thoughts?

Account Closed · Answer

You can go conforming all day with a 690 FICO and low DTI's. 
Take a look at the Fannie eligibity matrix- 
https://www.fanniemae.com/content/eligibility_information/eligibility-matrix.pdf

Justin Case · Answer

@Brock Y.

did you get out before this week?

Justin Case · Answer

Don't get out take a short position. Real Estate is at all times as well why get in to RE?

Brock Y. · Answer

@Justin Case

I am getting out right now too. Hence my interest in properties however I just don't want 2-3. I want a lot more than that and was looking at financing.

Justin Case · Answer

What are you doing in the stock market?  The market is at an all time high at the lowest volatility in 20years.   I am shorting

Brock Y. · Answer

Thanks guys. I do have money saved up, just in stocks that I can liquidate if necessary. Looks like I will just wait it out.

Bill Jacobsen · Answer

I would want an emergency fund of about 3-6 months of living expenses and then build up cash for investment whether that be real estate or something else.

It doesn't make sense to me to pay private or hard money rates to buy real estate with 6 to 10% cap rates + 3% inflation.

Wait a little while then make lots of money.

Good Luck.

Bill