Help and advice for hard money

[Jonathan Toruno]

I have my eyes on a triplex listed at 163000 I wouldn’t offer no more then 150 cause it needs cosmetic work but what I’m wondering is should I use a hard money or regular loan? I’m gonna house hack and live in one of the units and also a long term tenant comes with the property. But not sure how much their rent is at. But an arv value of 220 is what the potential is. Just really wondering how to finance not sure if I should use my banks 0% down and get it but I’m not sure they would finance whole thing my credit is 660 but I’m hoping to have some cash cause I am wholesaling on as part time. Just any help would really appreciate it!!

[Kyle J.]

Hard money isn’t going to be an option if you’re owner-occupying the property, and I wouldn’t recommend lying about that or “neglecting to mention” it as suggested above. (I’m actually surprised to see that posted by someone whose title says they’re a lender.) My loan paperwork says the borrower would immediately be in default if they occupied the property as their residence. 

Anyway, you'll need some cash as zero percent down isn't going to be an option either. Even if you went the FHA route, which might be an option in your case, it still requires a small down payment.

Since the property needs some work, perhaps look into a FHA 203(k) loan so you can finance the renovation work too.