How to start out

[Mia Gomez]

so I've been working on building my credit, and I think I'm ready to start. I just wanted to know, what type of loan should I pursue if I want to buy and rehab and then rent out. I don't suppose a conventional loan would be appropriate in this aspect. I've called places and a few of them aren't ok with me renting my property out. Also, I wanted to do fix and flips but most loans are long term and won't let me sell. Please help! Thanks 

[Evelyn Roper]

Do you already own a primary home?  If not, is a duplex an option?  Because if you can find a duplex, you could rent one side for income.  If you can commit to living in it for a year, you could possibly qualify for an fha home mortgage.. Look up house hacking on here.  I hear it is an excellent way to start your rental portfolio.  

[Evelyn Roper]

Sorry, I overlooked the fact that you want to fix/flip.  If you are going to live in it for,at least a year, I think conventional/or fha 203k would work but I am not a lender.  Just  a newbie but have read blogs about it.

[Kevin Harrison]

There are some loans that will allow you to do this but I think they are more targeted at the OO aspect of things. @Upen Patel should know about this. Otherwise you many need to buy it traditionally and get a hard money type of loan to do the rehab and refinance out of it in 6 months or so.

[Boris Grinberg]

@Mia Gomez as a hard money lender myself, your situation is quite typical of what we see. 3-9 months loan to buy, rehab and refinance with a conventional loan or sell the property. With HML you get fast execution and flexible terms. But it comes at a cost of 10-15% rate and 0-4pts upfront depending on LTV, location,etc. We don't lend in PA but there are plenty of lenders out there. Happy to chat if you have questions. Good luck.

[Mia Gomez]

do you lend in Florida at all? 

[Mia Gomez]

thanks everyone! 

[Upen Patel]

@Kevin Harrison Thanks for the mention.

@Mia Gomez If you are buying rehab properties, then most likely you will have to get hard money/private money to buy and rehab. Once that is done and you have a tenant in place, you can do a cash-out refi to a conventional loan.