Delayed Financing worth it? Or retain as cash buy?

[Kevin Parekh]

I am at at cross roads. I have a small townhouse (2/2) that I already closed on for $70k. I have to rehab the place for $20k to make it rentable for $1200/mo. I want to know 2 things from yal experts:

(1) Is this a stupid deal to finance? The Cash flow is low to me... The mortgage broker I spoke to mentioned that I could only mortgage the $70k and NOT the fill $90k. This would be a delayed financing product that I would be using. 

(2) If I finance this place under my name, does it negatively effect how I can leverage money in the future? Currently I have one VA mortgage that I have house-hacked.

See attachment ! Thank you!

Kevin

[Gene Hacker]

What is the value? How long have you owned it? 

It may be possible to do a cash-out refi if you have owned it long enough to fill seasoning requirements.  

$1200 rent should cover DSCR loan coverage requirements. The issue could be the loan-to-value requirements as the DSCR lenders I have worked with seem to want 75% LTV or lower. But there could be other products out there.

You should talk to several lenders.  Not all have the same experience or products to offer.  It could also be worth talking to local banks as they sometimes have more flexibility than big lenders.