Financing first BRRRR

[Account Closed]

I’ve been doing paralysis by analysis till my mind is numb. Ready to take the plunge but would like advice on how best to leverage my funds:

Savings: $50k

Credit: 800+

Credit card/vehicle/student loans: paid off

Location: Charlotte

Market: SFH or Duplex

I know I want to put little into this first deal but can't swallow the fact of shoveling out the PMI when I have the funds. I'm interested in putting the money towards repairs and doing a refi. Any suggestions on conventional loan or FHA? % of savings to invest in?

Thanks!

[Marc Rice]

@Tyler Mulcahy

Find a lender who will do a 3% or 5% conventional loan. Some lenders have special products where they don't have PMI on the loan and it's a conventional product. Plus with conventional, PMI falls off at 80% LTV (9yrs ~) where FHA stays for life of loan. Also FHA is harder to close and higher interest rate and will not win in a multiple offer scenario.

No reason to do a 20% down, Cash on Cash return is much higher with 3-5% down loan.