Financing Advice (Cleveland)

[Kory Clark]

Hello Everyone,

When starting out what are some good ways to finance a deal? I've asked around about owner financing and there have been a of of no's and then bad deal structures. Before that I've had conversations with hard money lenders and they require a steady income and some experience and I have neither (recent college grad). Then going the conventional route for an FHA 203k sounds good but I need to qualify for that first. Any advice on which option to continue down for my first deal?

[Justin Fox]

If you're just starting out, you could do a HUD foreclosure and live there for 1 year before renting the property. You have a better chance at getting the property for the cheaper price during the OO buying period.

I think on most conventional loans (FHA especially) you have to live on the premises for a year before you can rent the property. If you could do the HUD route and put 20% down, that would be best because you'll have no PMI eating at your cashflow.

Justin