Hard Money or Conventional Loan? (and rehab)

[Kat Hussey]

Which would you recommend for a first deal? Hard Money or a Conventional Loan? We want to do either a flip or a rental property, probably a single family, but possibly a duplex. I have enough for a 20% deposit already saved, but then how do I pay for the rehab?

[Odie Ayaga]

I think you're asking the last question first since answering the others somewhat dictates the question you asked. If you don't yet know whether you're going to buy a flip or a rental then you can't effectively answer the question on what type of financing to use since they tend to go along with certain type of properties. Are you presuming the rehab required is going to disqualify traditional funding? If so that knocks that option off the table. If it doesn't need rehab and you're looking long term then typically you'd look at traditional unless you don't qualify.