Is this a good move?

[Phillip G Alexander]

Hey BP, I'm going to be brief here.  I'm planning on purchasing a primary residence in Cleveland, OH between $85,000-$100,000.  I would then get a hard money loan, $10,000-$20,000, to rehab/update the home.  Can I then refinance, payback the hard money, take the leftovers to invest in a rental?  Should I buy my primary residence in my name or my llc?  Thanks for your time.

-Phil Alexander

[Jonathan Bombaci]

Ask your lender if you can do a 203k or other rehab loan. Then they’ll give you the money for repairs at a very low interest rate, you won’t have to deal a hard money lender, and you don’t have to pay for refinancing. Interest rates are low now lock that in if you can. Rehab or bridge loans can be great products for this type of situation. It’s much harder to do them if you’re not going to live in the property but since your goal is to owner occupy it I think you’ll be able to find them.