Buy and Hold using private money

[Kyle Winters]

I have B/C class zip codes that bring in close to 1.5% rule for section 8 rentals. My question is on the strategy that I’m considering. I already have 7 rentals with 3 being section 8 in these areas.

I'm looking to buy rent ready SFH's with the down payment coming from private investors. I would be paying them monthly interest over a 5-7 year hold period, then look to refinance after that to get their money paid back.

I look to buy these properties below market value and will add in capex, maintenance, vacancy, and property management costs to make sure there is still a small amount of cash flow after that. 

What are some things that I may need to consider as potential risks?

[Drew Sygit]

What lender is going to allow you to borrow the required 20-25% down payment?