AIRBNB Finance Options

[Silenceux Francois]

I am in the process of acquiring an SFH next door to my childhood home. Considering this property was built in 1944 and the original owner acquired the property in the late '80s with no major updating since and an outdated layout. So this project will be capital intensive, with a purchase price of $500,000 and a rehab budget of $120K- $165K estimate to add additional square footage, revamp layout, and update. Since we cannot predict when the Feds will be raising the interest rate, should I lock in a favorable rate with a conventional loan and find the rehab funds somewhere else? Or go the hard money route by leveraging 90/100 with a 7% rate bridge loan and refinance once the project is completed?

ConventionalPurchase Price: $500,000

Conventional: 5%

Hard money:Purchase Price: $500,000

Terms: 90/100 - 12 months - 7%Orgination Fee: 1.5%