While I am a lender, I personally use hard money on all of my own investment projects. Leverage, when used correctly, is one of the most effective ways to scale. The key is vetting your lender properly—asking the right questions, understanding the terms, and ensuring the numbers make sense for your strategy. While using financing does mean I don't keep 100% of the profit due to borrowing costs, it allows me to take on multiple projects at once and operate in higher price ranges than if I were only using my own capital. If you're strictly buying turnkey properties and financing with DSCR loans, keep in mind that you'll typically need to put down 20% or more, and because of the higher LTV, you'll often get the highest interest rate available for your credit bracket. Every investor has a different approach, but I personally buy my rentals the same way I buy my flips..at a deep discount using hard/private money, then refinance with a rate-and-term loan to secure a lowest interest rate.
Ultimately, it comes down to your goals, risk tolerance, and ability to find value-add opportunities. Sounds like you’ve put in the work to build a solid foundation—wishing you success as you take the next steps!
