🔍 How Do You Finance Niche $60K Rental Homes in Texas Without Losing Cash Flow?

[Eduardo Cambil]

🔍 How Do You Finance Niche $60K Rental Homes in Texas Without Losing Cash Flow?

Body:
Hey BP community!

My business partner and I are actively buying niche rental properties in Texas, typically priced at $60,000 or below, and we're looking for guidance from others who've done this successfully.

Our strategy is to:

• Buy under an LLC

• Use owner financing with as low as 10% down

• Rent the homes for $900–$1,200/month

• Eventually refinance with a DSCR loan once the property is stabilized

The challenge we're facing is that:

• Most owner finance deals come with 10–12% interest over 10 years, which leaves little to no cash flow

• Some include balloon payments after 5 years, which adds refinancing pressure

• Most DSCR lenders we've contacted won’t touch loans under $75K (refi) or $150K (purchase), which rules out most of our deals

We want to create long-term buy-and-hold cash flow. Ideally, we’d love to lock in a 30-year repayment structure (either through a creative owner finance deal or private lender), so we can keep our monthly payments around $300, leaving $600+/month in positive cash flow.

So here’s my question to you all:

👉 How do you finance sub-$60K homes in a way that makes the numbers work?
👉 Has anyone found private lenders, creative owner finance structures, or DSCR lenders that work with these small deals?
👉 Do people bundle these into portfolios before refinancing, or use HELOCs, cross-collateralization, or something else?

We’d really appreciate any advice or insight on how you’ve made these types of deals work while protecting your cash flow. Open to collaborating or connecting if you're doing something similar.

Thanks in advance 🙌

🔍 How Do You Finance Niche $60K Rental Homes in Texas Without Losing Cash Flow?

Body:
Hey BP community!

My business partner and I are actively buying niche rental properties in Texas, typically priced at $60,000 or below, and we're looking for guidance from others who've done this successfully.

Our strategy is to:

• Buy under an LLC

• Use owner financing with as low as 10% down

• Rent the homes for $900–$1,200/month

• Eventually refinance with a DSCR loan once the property is stabilized

The challenge we're facing is that:

• Most owner finance deals come with 10–12% interest over 10 years, which leaves little to no cash flow

• Some include balloon payments after 5 years, which adds refinancing pressure

• Most DSCR lenders we've contacted won’t touch loans under $75K (refi) or $150K (purchase), which rules out most of our deals

We want to create long-term buy-and-hold cash flow. Ideally, we’d love to lock in a 30-year repayment structure (either through a creative owner finance deal or private lender), so we can keep our monthly payments around $300, leaving $600+/month in positive cash flow.

So here’s my question to you all:

👉 How do you finance sub-$60K homes in a way that makes the numbers work?
👉 Has anyone found private lenders, creative owner finance structures, or DSCR lenders that work with these small deals?
👉 Do people bundle these into portfolios before refinancing, or use HELOCs, cross-collateralization, or something else?

We’d really appreciate any advice or insight on how you’ve made these types of deals work while protecting your cash flow. Open to collaborating or connecting if you're doing something similar.

Thanks in advance 🙌