SFH Deal Financing Advice

[Maria Bowyer]

Hello all,

We stumbled upon a financing dilemma trying to finance a deal.

I'm from Virginia. We're trying to purchase a SFH rental property in York county, PA. We found several properties on MLS, saw them in person. All of them are in distressed condition, so they'll require rehab. We chose a short-sale property as our target deal. We're unable to make an offer until we show proof of funds. However, we were not able to get a conventional mortgage because we already have 2 existing mortgages on our rental properties. The banks said our DTI is too high.

Can anyone suggest a creative financing strategy ?  Is hard money lending the only option? 

It's been said multiple times on BP podcasts that "you gotta find a deal first" then financing, but it appears visa versa.