House Hack Financing Question

[Justin Morris]

Hi BP,

My wife and I are looking to house hack a property in Saint Pete, FL. We want to buy a duplex, rent it out, then move back in and fix it up. We've talked to a conventional FHA lender and we've got some work to do on the credit to get an approval. I am considering going the private money route and purchase a property through that route while we work on the credit/pay down debt so our DTI is better and we can get approved for more, then refinance in a year.

During that year we’d rent/Airbnb the duplex (we’d only be buying a duplex that needed cosmetic Reno as it’s our first property). and live abroad to save $$ then come back and refinance the property as our primary residence. My questions are:

1. Is this a good strategy?

2. Is there private money lenders out there that will do 100% financing that aren’t crazy expense with points and high interest.

Thanks.