First property under contract - looking for advice on financing!

[Samuel Huntington]

Hello Bigger Pockets!

After much research, analyzing, and viewing properties we finally got our first investment property under contract this past weekend, a duplex located in the suburbs of the Twin Cities (MN)!

A brief introduction to help frame our financing question; I graduated just under a year ago with my PharmD and my girlfriend has been working with a local company in their sales support division for several years. We make a very good salary together and thought we had positioned ourselves financially in a very good place to buy our first live-in (i.e. the famous BP house-hack) investment property. Unfortunately, we quickly found out that multi-family properties were flying off the market in our area and our conventional financing offers (even without financing contingencies) were barely getting a glance compared to the numerous cash offers every property was receiving. Which, finally, leads me to our question….

We are fortunate that both our parents offered to supply the cash for us to make a cash offer. However, before we could do the proper research to figure out the best strategy to do this we found a property we loved and knew we needed to make our offer STAT. Sure enough, we got our first property under contract!

I’m wondering if anyone has any advice on how we should go about structuring this deal now? We intend to refinance shortly after to pay everyone back, but are looking for the best way to do this to avoid any unnecessary taxes, closing costs, etc. Any advice or thoughts would be much appreciated!

Thanks!