Financing New Properties

[Julie Sisnroy]

I recently found a deal for two homes, one has a steady renter and the other is vacant. The home for $30,000 has a renter who has no plans on leaving, the rent is currently $540/month. It needs rehab, but no reason to do it now. It has a ARV of roughly $60,000.

The other home is $36,000 and is being rehabbed with a ARV of $62,000.

After my preliminary analysis, I would like to purchase both. I don't know much about creative financing as I have always gone conventional or VA. My VA loan is tied up in another rental property so that is not even an option (plus can't use it if not owner-occupied).

I was out of work for almost a year due to a serious medical condition, so I am not sure if conventional is the way to go.

I also don't have a huge amount for down payment ($10,000) since I was out of work.

I also own another rental property that has about $50,000 in equity.

Question: Should I consider a HELOC or HE Loan for some of the financing? Or try to get approved the conventional way?

I don't know much about private lending. Can anyone help a newbie?