"District South was financed with a fixed interest rate construction loan from our partners at First Financial Bank NA.

This may kill your cash flow due to high interests rates though. 2.

My in-laws loaned us the total purchase price minus $5,000 on a 3% interest rate.

We invest in some deals because they meet our Hurdle Rate/Return on Investment objectives. 

You get a Capitalization Rate (CAP Rate), which equals your annualized return by dividing the Net Operating Income (you had gross in your narrative) by the purchase price.

(ATTOM)These figures represent a significant decline in foreclosure rates from the peak levels recorded during the 2010 housing crisis.

The property will be strictly for investment purposes, not a primary residence.I’ve been looking into two potential financing options:Hard Money Lenders (HML) – I’m drawn to this option for its speed in closing, but I know the rates can be higher.DSCR Loans – This seems like a great option for long-term rentals, but I’m unsure if it’s the right fit for my auction property since it might need some rehabbing.I’m also considering purchasing through a land trust or an LLC to add a layer of protection and privacy.So, my questions are:What’s the best way to approach financing for auction properties?

You could bring less down and possibly have a lower interest rate since you will be living there.

What they will offer you is an appliance package, or closing cost help, or a low fixed rate loan. 

Note if you go over 4 units, your valuation will be based on NOI and comp rate.