Trying to pick best financing rout for 3rd rental

[Robert Hamilton]

In this crazy time, I plan to pick up a 3rd SFH (under $180k probably) to make a long term rental here in St. Petersburg, FL.

I have $50k cash on hand that I can use for purchase, other $ for a small upgrade to make property rental ready.   Almost every property that I see that would be worth picking up for what I want is going to cash buyers, or is listed by wholesalers requiring cash buyer or hard money financing buyer.

I am considering going the hard money lending route versus refinancing my primary residence to pull out cash ( I have about $200k equity so it would work).

What I see:  Hard money would be quick, not change any payments until I actually sign on a property that I want, all the risk would be on the new purchase property, I might have difficulty getting the new property refinanced off of hard money at any decent terms (both because of rentals I already have, lender fears with this market, possibly dropping values, etc), all costs related to would be able to be put under taxes under this new property.  Refinancing my primary to get the cash on hand to be a cash buyer would take longer, financing costs both short and long term would be on much more preferable rates than on an investment property, my mortgage writeoffs on taxes would be deductions on primary residence and not a much on investment property costs/income, all the risk would be on my primary home, I would be paying on the new higher mortgage while sitting on the cash no matter how long I had to wait to find new property I wanted to purchase.

What am I missing, what have I not thought of, what do you all think?

[Robert Hamilton]

@Will Dixon

I appreciate it. 2020 taxes first year I plan to using tax specialist. Been handling it t now my self.