Is paying 7% interest crazy

[Matt Tallent]

Before you answer I have found a property:

3 bed 1 bath.

Rent 1250 -1300

Expenses in normal financing 750-800

Cash flow 400-500/ month before maintenance.

I own a rental and took a loss last year for one time expense renovations. Which hurt my debt to income so conventional financing on this isn’t working out.

I still like this deal and a potential product is basically a hard money rental loan paying 7% interest.

Still working out the details but from what I’ve heard you can refi after one year of taxes showing positive cash flow.

I see it as getting me in a great deal instead of waiting for another year of taxes. It’s a tool in the tool belt.

What do you guys think?

Thanks!