Financing Options - Traditional or Hard Money

[Andrew M.]

I'm looking to purchase a potential 2 unit apartment building, but trying to figure out financing. I have enough cash for a 20% downpayment, using traditional financing, but I do not want to tie up all my money in this property since I would potentially want to purchase another property after I rehab this one. The question I have is, are there downsides of purchasing a property with traditional lending and then do a cash out re-finance after the rehab is done? I'm a little hesitant on using hard money to purchase this property and incurring even higher interest rates than a traditional lender if i have enough cash for a 20% downpayment. Input and advice would be appreciated. 

[Deanna Parker]

You might also consider a private money loan for the purchase &/or the cash out refi.