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