Private Money for a House Hack?

[Connor Anderson]

My goal is to buy a 4 bed 2 bath house in the Barnum and Athmar Park area of Denver. $300-$350k seems to be the range of house that meets my criteria in this area.

The only problem is that with my debt to income ratio (student loans and a car payment) I can only qualify for about $250k.

Running the numbers I know that I would live for free and even cash flow a small amount on a property, but of course mortgage companies don't look at this when lending. 

So here is my question, are there any Private Money Lenders out there willing to loan money to a young investor looking to get into his first house hack?

Or should I just wait until the Fall or Winter, in hopes that the market will soften and I can afford a house hack using a traditional lender?

Thank you in advance!  

[Travis Sperr]

@Connor Anderson it is no to say it can't be done - but a very low likelihood, unless you can get true private money - an uncle, parent, colleague. Any sophisticated lender is either not interested or will want significant money down, sometimes upward of 40%. The reason for this is the lending laws to owner occupied borrowers are significantly different than lending to investors - examples foreclosure process, rates and fees that can be charged and no balloon payments.

If you do fins someone to lend the money needed, I would highly recommend that you have a competent mortgage lender take a very close look at the deal so they can get you refinanced out of the private money once you have the rent revenue in place. The process might be different on a single family collecting rent rather than an investment property. 

Although I wouldn't use the term soften in our market, especially in the areas you want to buy, there is truth to the fact that some people who list in Sept - Jan are selling because they need to and not because they want to. But there are still more buyers than sellers...

Good Luck!