Best option?

[Deyano M.]

Hello all mortgage brokers, lenders, and financial gurus!

I am looking to buy an investment property in the $90-$145K range. Initial thoughts were to take a HELOC out with a family member on her home which we could get for around $150K max. Figured most could be used for the purchase, and some for the rehab.

With the softening market, a realtor friend has suggested renting the property for at least a year. The area I am searching in has rental potential. He also suggested traditional mortgages as an option, but we would never reside there- that wouldn't be possible; would it?

We could potentially invest around $10K ourselves although that would be directly out of savings- we would like to avoid that if we can. We have also tried to lean away from taking a loan on our retirement accounts (401K) and anything that would be a poor financial decision. We have several credit cards which could be used for some rehab funding, but that would only be ideal with a flip so we could pay them off with the profits quickly- not a rental situation.

If we were to get a home for $140K, what would be your approach. Any tips/hints we might be missing? We have the money and sources- just don't know what would be the best strategy. If you can provide examples, we would greatly appreciate.

Thanks all!
Deyano