Looking for a creative option to purchase our second property

[Sharon Beatty]

My husband and I want to purchase our second investment next year. We've house-hacked our current home and created a 2bd/2bth apt in the basement. Current VA loan that we refi'd after completion to pay off credit card debt used for construction. Looking for options:

1. We could refi out of the VA loan and re-use but it cost us $20k to refi and I'm not sure that it makes sense to refi again with a bank. 3.25 interest rate now. We can go back to the VA and just refi to lower rate in Feb with no additional cost to us (as long as we don't take money out). I'm in Portland which is a white-hot market and a VA loan would limit our choices as not many sellers will go through the hoops the VA requires. We got our house because it was a real fixer upper which scared off the regular home buyer and the seller needed more money than a flipper would pay. I'm sure that scenario is out there still but very few options.

2. Seller financing. But I'm not clear on whether that means a wrap-around or something else. Help?

3. Buying a foreclosure. Not sure how we'd get the financing for that. Maybe private or hard money?

Any other options?

Thanks so much BP community!