100% financing plus renovation costs

[Mark Solomon]

I'm looking to purchase a 5 unit and rehab it and then live in it. I heard on the podcast that someone house hacked their first real estate investment this very same way. Because it was their primary residence they were able to get the purchase and the rehab 100% financed and only paid closing costs. Does anyone know the type of loan I would need to qualify for? The property is in Fort Lauderdale, Florida in case anyone knows a good lender.

Much appreciated!

[Albert Bui]

Originally posted by @Mark Solomon:

I'm looking to purchase a 5 unit and rehab it and then live in it. I heard on the podcast that someone house hacked their first real estate investment this very same way. Because it was their primary residence they were able to get the purchase and the rehab 100% financed and only paid closing costs. Does anyone know the type of loan I would need to qualify for? The property is in Fort Lauderdale, Florida in case anyone knows a good lender.

Much appreciated!

HI Mark,

Going in on a deal day 1 with 100% is non existent (w/o utilizing cross collateralization), however ultimately ending up with 100% financing... well that is possible through use of PML/HML, buying at discount, structuring your 1st and 2nd or financing strategically, ending up at 70-75% ARV through major value add or optimizing your P&L, and depending on your local lenders what your seasoning period for leases, rent rolls, and income is so you can use your value to refinance out of the PML/HML and end up with effectively with 100% financing.

Some banks are 0-6 months seasoning for income stabilization (usually really small or local banks or credit unions), and regionals and statewide banks will usually require 6-12 months and sometimes even 24 months + based on your experience level or track record (or less with lots of exp).

Best of luck,