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Updated almost 9 years ago on . Most recent reply
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How does pml get paid back from buy and holds
Want to get a better understanding about paying back a pml from a rental property buy. I know for flips that once the property sells that the pml gets paid back from the sale price. But how would I pay a lender back with a rental property since I won't have the purchase amount back with a sale. What's the process? Is it monthly with the cash flow of the property? Advice for pursuading a lender to invest in rental property when the lender wants to be paid back quickly or full payment...
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- Rental Property Investor
- East Wenatchee, WA
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I suppose the BRRR strategy may be best. Buy, renovate, rent, refinance, repeat.
If your deal is a great buy and you force appreciation through improvements, you could refinance your private money lender out provided you can qualify with a bank.
In general, HMLs and other quick payback loans aren't a good fit for buy and holds, though @Kenny Lewis