Purchase Process for Single family

[Ronald Stark]

Hi All,

I am new to property investment and still need to make my first single family home purchase which I intend to rent out for positive cash flow in Austin, TX area.

I am assuming I should get pre-approval first then identify the property. If I buy a rehab I understand i can't get a traditional loan and will have to get a loan from hard money lender hence the need to get pre-approval with hard money lender first. My concern is what if I can't refinance to a regular 30 year after rehab. I am stuck and would have to sell property quickly. Even if I also get pre-approval from a regular lender I assume there is no guarantee they will finance the loan on the property I buy.

If I go the route of no rehab and no need for hard money then get pre-approval on a single family home at least if the bank says no to that house I am not stuck with  the property.

I would prefer to buy a single family for rehab but I am worried about not being able to refinance away from the hard money loan.

Your comments would be appreciated maybe I am worrying needlessly.

Thanks,

Ron

[Paul James]

@Ronald Stark

Hope this finds you well, there are hard money lenders here in the Austin area that have Landlord programs for your specific need. They can provide hard money up front with a refinance after 90 days ( Once repairs have been made). These temp to perm loans come with 15-20-30 yr fixed refinance rates, and will usually lend 70%LTV on the front end with minimal points and interest for your acquisition. Sherman Bridge lending is one company that I know carries this type of program.

Best of luck!