Personal Loan for purchasing power in Midwest Market

[Brandon Chen]

Hello BP!

Been thinking about taking on a personal loan of 50-70k for purchasing power in my Midwest market, the loan would just be for down payments and closing costs on sub 85k SFH / Duplex properties. Any thoughts or insight? Anyone done this themselves or know someone who has done this before?

Thanks!

[Joseph Bui]

With personal loans, the interest is very high. My recommendation would be to use that loan to do a BRRRR in a Midwest market, instead of using it as a down payment. In the markets I shop, there are plenty of properties that will cost around the 80k mark total (including rehab). After rehab is complete, you can work with a lender to do a cash out refinance and get into a conventional loan where the interest rate will be lower. Then you pay back your personal loan with the cash you got from the conventional loan. Be happy connect and chat more if you are interested.