First off market deal & first time using HML

[Yesenia Padilla]

I have an off market deal for 2 house on 1 lot property in a c type neighborhood. I plan on holding on and renting both units out. The back unit was gutted so I am not able to get a conventional loan. I found a private lender his terms are

Loan amount 70%

9.99% interest

2% fee

1 year term with no prepayment penalty

I will need to use my heloc to cover the remaining 30%

Purchase price 295k

Arv - 350k - 360k

Rehab - 20k

As soon as we rehab the unit and then get a tenant in there I wanted to refinance to pay private lender back. We were shooting for within 3 months. My normal mortgage lender Can't cash out refinance so I can try and recoup some of heloc until after we owned the property for 6 months. Are there lenders out there who will allow a cash out ref sooner then 6 months? Is paying the interest rate of the hml and heloc for 6 months not an very smart or good idea? Are they other options that I'm not thinking of?

I'm beyond excited that this may be my first off market deal but I am also very nervous. I've done a lot of due diligence but I'm no expert and want to make sure I'm not missing anything and or making a bad investment decision.

Sorry for long post. Hope I made sense. Thanks in advance for your help guys/gals.