I have been buying foreclosures for rentals using cash from my 401k and doing fix up work, then rolling them into a mortgage (I'm at 8 properties, 2 under contract). These are 3/2 SFH that are Upper $30k to $40k, need a little work bringing total to 45k (my max amount) and appraise for 60k to 75k. I don't finance right off the bat because the banks I am working with don't like to finance improvements and they also need a down payment since they have to write the loan with the house value being contract price or appraised whichever is less. So I buy cash, fix up, mortgage at $45k with no down payment, put it under rental management, rinse/repeat. My current problem is that I only have enough cash to do one house at a time. I am missing opportunities and would like to be able to do at least 2 at a time so I need access to another 45k cash. Typical turn around is 30 to 90 days. Where would you recommend getting the best deal on financing for this short a period? Hard cash, Prosper, Lending Club??
