Creative financing for my 2nd deal in a competitive market

[Brandon Gale]

I bought my 1st property (3 family rental) a little over a year ago with a 5% down owner occupied loan. I just finished a cash-out refi and want to use the money to buy my next rental property. My plan is to do another owner occupy loan, but my lender thinks it's risky to use the conventional option in my state (Mass Housing) since I just finished a refi and the underwriter may not like that its probably obvious im using the loan for investing. So that leaves with with only FHA for the low down-payment owner occupy.

I am in a very hot market (Worcester, MA) where the multifamilies are almost all over 100 years old, so getting an FHA loan accepted and then having it pass the strict rules has been practically impossible.

This is why I am now trying to explore other potential creative financing options. I don't have enough cash to buy a property for 20% down and do the necessary rehabs.

Any ideas, thoughts or suggestions are much appreciated!

[Sabrina Sanchez]

@Brandon Gale

Hi Brandon, My team and I work with a ton of investors, especially in Worcester. We focus on investors and have no problem using fha and other low down payment loans in Worcester. I myself am in the same position as you and looking for my next buy and hold.

Furthermore, @Andrew Freed and I host a meetup in Worcester that helps educate other investors. Creative financing is a topic that comes up frequently. If you're interested feel free to come meet us and our guest speakers tomorrow at the Hangover Pub from 630-830 PM.