Hi all, I've been thinking about getting into real estate for a while and at this point it seems as if it would make the most sense to me to go with a hard money lender to acquire my first rental property and doing the BRRRR method for small multifamily (2-4). My reason for trying to go with hard money is that I don't make a high enough income to qualify for a conventional loan in my region (Hudson Valley NY), although my credit score, reports, and DTI are quite healthy.
My question however has to do with the actual process of turning the hard money loan into a conventional loan; Won't I still hit a wall when trying to qualify for a traditional loan because of my income even if the property itself turns out to be profitable? If so, what what better options should I look into for my specific situation.
Some additional details of mine:
- I am fresh out of college 23y/o
- Been in kitchens/retail for about 4 years now, my current job is at a supermarket making 17/hr on ~30hrs a week
- Going to switch into a new full time 40hr job as an entry level accounting associate starting next week making 18/hr
- Last year made 20k
- Only have ~3k in reserves, but plan to be entering partnerships with those or at least raising money from those with much more capital than I do.
Thank you all in advance!
