Finacing Options? Fix and Hold

[Rob Randle]

For my first rental I bought an A+ condition property and only had to put 3k in it to rent. It was a good deal and I am happy with the purchase, however I want a BETTER deal the second time around

As you know, many posters on this site buy distressed properties fix and hold because the discount is better. This is what I want to do, but I have some questions...

1. What type of loan would work best on a fix and hold investment property? Lets say a property that I need to put 20-30k into it. I was reading about 203K loans until I realized that it is only for owner occupants. The reason I ask is because I do not want to put my own money into a sizable renovation.

2. What are some key considerations and differences that I have to account for using this type of strategy?

[Terry Lewis]

Hi Rob,

We were Just at the Distressed Note and Seller financing convention last weekend. The new theme there was:

Buy Distressed homes and resell at a premium with seller financing. A properly created note can then be sold or kept as mail box money. Let the new buyer do the rehab and thereby create LTV thru the buyers sweat equity and investment of fixing up the property.