Financing for 9 Months Using Investment Property as Collateral

[Donald Pierson]

TLDR: Fix & Flip (see BP report link View report). $725k (single family home; on MLS @ 1mil). I need $210 for closing. I'm using $100k of my own cash toward the total closing costs of $210k. For the remaining $110k can I get financing for 9 months with no payments for 9 months using my investment property (STR) as collateral?

Investment Property:

Fixed Interest Rate 4.25%

Mortgage Balance $364,088.24 (Mkt value $650k)

Principle & Interest $1,827.56

Tax & Ins $1,189.78

Monthly payment $3,017.34

My Middle Credit Score: 750

My Debt to Income: Under 20%

Good reserves

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This is a fix and flip. I am confident the estimated ARV is strong (it may in fact be a little conservative). The $300k repair costs are based on a very recent/thorough inspection report and my GC's scope of work. The property is surrounded by multimillion dollar estates/mansions. It is located in an exclusive gated community with little to no single family home inventory left. It is also quite challenging to find land and initiate new construction.

IF we are able to renovate AND sell the property within 6 months life is good (not likely). However, I am trying to create an exit plan if we are not able to sell within 6 months (not likely). Since this is my first fix and flip financing is at a premium (see terms below). I'm fine with that because of the projected ARV.

Bridge Loan Terms

My lender will finance this loan. It will be a 6 month draw, 75% LTV, 100% reno costs covered, 12.75% rate at 3 points in cost. We can adjust to 12 month term, but this adjusts the rate up by .5%. Total loan amount not to exceed 75% ARV.

After 6 months I would like to convert the amount owed ($910k) to a conventional loan to hold and rent out the property

Can I get financing for 9 months with no payments for 9 months using my investment property (STR) as collateral?

Any suggestions are greatly appreciated!