Newbie Needing Financing Advice

[Matt Hudson]

Hello BP! My wife and I are tired of talking about real estate investing and are ready to start. Unfortunately, we can't figure out the financial hurdle of our current situation and are seeking guidance. So here's the sitch...

We live in our forever home and operate an STRP (Airbnb) on the property. My wife has a full time job and I just became self employed just over a year ago.

With my new self employed status I was told I could not be approved for any loan until I have filed 2 W2's. My wife's income would be the only usable income. With our debt to income ratio this prevents us from getting a traditional loan to purchase an investment.

This would also prevent us taking equity out of our current home. We already did a cash out refinance and equity line to build our DADU which houses the STRP.

We have $25-30k cash to invest. We're wanting to buy and hold. Potentially a BRRR for a property at the $150k or less price point.

I've looked into traditional loans and that doesn't seem feasible. Have some hard money options at 12% APR for 6 months and 2 points (seems terrifying). Trying to avoid partnerships with friends and family for several reasons.

We'd like to get the financing options hammered out before really digging in and looking for deals. The financing will have influence on what kind of deal is feasible.

Any suggestions?

Any suggestions?