Rental Property Investor · Oceanside, CA · Member since 2018 · 78 posts · 60 votes
Hey lovely people!
I found a deal that is listed as two single units but each one is half of a duplex. They are listed at $59,900 each (recently lowered from $74,900) and have been on the market for 160+ days.
Now, both units are currently rented at $1100 each and have about a year left on each lease. There is obviously money to be made in passive income. Additionally, there is some room to add value, not much as they were renovated a few years ago, but not fully.
I want to offer $75k cash But All I have is $30k.
I don't know anything about hard money loans, but I'm looking to learn! Would this be an appropriate time to use hard money? Would that be an appropriate initial offer to negotiate from?
I would like to buy them somehow, then once some value is added REFI them and continue stacking more properties into my portfolio.
You could use private loans or HELOCs (or personal lines of credit) as well. These are nice because you don’t need a bank to underwrite the deal prior to the buy.
If you are planning to refinance later talk to the lender now to make sure they are on board with your plan.