Best strategy for Purchasing a Wholesale Property in Newark

[Ricky Hopp]

Hi all!

I am discussing purchasing a wholesale property in Newark (under 100,000).  The value is most likely discounted to its appraised value, and the property is in good condition and is in a pretty good rental area of town.  The offer price is enough for me to purchase all cash, however I don't want to tie up the full value of cash in the purchase as I want the flexibility to do some small rehab on the property, and/or purchase another property.

My thoughts are two strategies, and I would like your opinion on your thoughts of the best strategy that limits my risk, and might be a better approach for a newer investor.  If you have any other strategies, I am all ears.

Before strategies, a little more about my situation:

• Excellent Credit
• Enough assets and steady income to finance this purchase
• Prefer building wealth through cash flow positive renting but open to easy flips

1. Purchase with my own cash --> Rent out immediately --> after say 3 months, finance this deal through a 30 year mortgage.  My hope is that when I rent the apartment (cash flow positive), the bank will see the reduced risk of financing the property, and the appraised value should come in higher than purchase price.  Given that I've read banks usually only finance roughly 75-80%, the higher appraised value of the property should allow me to recoup most if not all of my cash purchase. 
2. Purchase with little of my own cash and the rest through hard money + 10,000 for repairs.  I would need to find a reputable hard money lender.  Again follow the same process of do some small repairs, rent out, and then after 3 months refinance.  Hopefully appraised value is high enough to recoup the hard money lenders portion to pay that off.  Again minimal out of pocket.
3. Any other strategy?

Thanks!

Ricky