Am I Missing Something?

[Aron Teran]

I've started doing some research on how to best finance my first investment property (buy and hold). Met with a local bank, they offer 80% loan plus rehab costs in a 5/1 ARM at 4.5%. I will be looking for a home in the $60-$85k range, so I am estimating no more than a $100k loan. The rehab $ is paid out in installments as work is completed. This seem like a great rate, especially considering the fact that I'd rather not pay cash for rehabbing.

Am I missing something here?

[Ingrid J.]

@Aron Teran Welcome to BP. That mortgage offer like a good start.

I would recommend looking into what other possibilities you have before closing on anything. Could you get terms from another bank, or with creative finance? The world is composed of people, and conventional loans are just the tip of the iceberg.