How to get financing for low cost rehab property

[Thomas Johnson]

I buy in an area where houses generally sell for $20k to about $150k.  It is an older town so most of the lower priced properties are rehab properties.  The problem I am running into is not being able to get loans for these lower priced properties.  I love purchasing them because the rental rates are high enough to get over 30% cash on cash returns.  There is a rental shortage and my properties I do have rent within days of listing them.  I want to grow but am stuck with not being able to get financing.  I am located in central PA and there are a lot of towns like this one.  How are people growing their portfolios in these areas when you cannot get funding?  Am I just not connecting with the right lenders?

[Alex L.]

For anything 30k and under, I use personal loans and then cash out refi 6 months later to pay off the loan.