Skip to content
×
Try PRO Free Today!
BiggerPockets Pro offers you a comprehensive suite of tools and resources
Market and Deal Finder Tools
Deal Analysis Calculators
Property Management Software
Exclusive discounts to Home Depot, RentRedi, and more
$0
7 days free
$828/yr or $69/mo when billed monthly.
$390/yr or $32.5/mo when billed annually.
7 days free. Cancel anytime.
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
Creative Real Estate Financing
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated about 8 years ago on .

User Stats

63
Posts
36
Votes
Quentin McNew
  • Real Estate Investor
  • Champaign, IL
36
Votes |
63
Posts

Financing buy and holds with low capital

Quentin McNew
  • Real Estate Investor
  • Champaign, IL
Posted

I am just starting on my first deal and currently working toward my Real Estate license. I have been in the military the past 5 years on part time status and been having hard time getting approved with a conventional loan, because of the training events interfering with a stable W2 income. I just finished my Master's degree and looking for active income job now to help with conventional financing down the road. 

There is a property on the market where I have renters lined up (my friends) and want to use for house hacking. I was wondering the best method to pursue to finance it? Hard Money lending is more for fix and flip with the high interest rate and doesn't make sense to me for this buy and hold property. 

I know I can use these methods, but was wanting guidance on what you think the best course of action I should take on financing a buy and hold property starting out?

1. Conventional loan (bank)

2. In house loan (local bank) - I am working on this right now and finding a cosigner

3. VA loan - My 6 year mark is October (when I am eligible for VA loan and I will definitely use eventually)

4. FHA loan - live in for at least 1 year

5. Seller Financing - Seller won't do it, I already tried

6. Partnership

7. Hard Money - More for flipping house and high interest rate doesn't make sense for buy and hold?? 

8. Private Money - I plan on using this down the road, but since this is the first deal I am putting together.....its hard to look credible

9. Syndication 

10. Lease Option 

business profile image
Freedom Capital Partners LLC