Question on BRRRR financing with Hard Money

[Hamlin Caldwell]

Hey new to the site, and to investing! Been listening to the Podcast for a while and looking to put my first deal together. However need some advice on BRRRR financing.

My stratergy/thought right now is to househack a tri or quad plex which needs to be rehabbed, use hard money for the rehab, then (using the 70% rule when purchasing) refinance with a mortgage lender at a 80% LTV over 30 years (since it will my primary residence).

Quick Questions (I apologize if they seem basic)

1. Would a mortgage lender allow a refinance with 30 year term since I own the home already..? I think I know the answer but haven't done this before!

2. Could I get a refinance greater than a 80% LTV on 30 years, say 90 or 95% LTV (since this will be my primary residence)

3. Will a hard money lender require me to put any cash into the rehab myself, or would they just require the 3% financing fee up front?

Any feedback is helpful, thanks! New to investing but ready to dive in!

Hamlin Caldwell

[Josue Velney]

@Hamlin Caldwell I like the way you think! House hacking in your first investment property is the way to go. My advice to you would be to find as much information on all the special low money down programs and see which one works best for you. Example FHA, FHA (203), VA and Mass Housing to name a few. Once you fill that bucket you can start looking into seller financing. Most people say seller financing does not work. My response is yes you are correct, it will not work for you with that attitude. I have used it twice in my career. Stay focus my friend!