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?

This negative position can consume years of cash flow to recover.

To optimize taxes, consider lending through a self-directed IRA or Solo 401(k) to grow interest tax-deferred or tax-free.

To avoid going through the same poor experience, keep reading.Even if someone gives you a referral here, do NOT make the mistake of assuming that the PMC will meet your expectations, just because they met the expectations of the referral source.In our experience, the #1 mistake owners make when selecting a Property Management Company (PMC) is ASSUMING instead of CONFIRMING.It's often a case of not doing enough research, as they don't know what they don't know!

I LOVED getting a loan through DR Horton on a DR Horton build, that I had to pay for a DR Horton appraisal.

We are direct lenders, meaning we lend our own money, for flips within approximately 1½ hours of our home.We walk through every property to avoid surprises and to confirm the rehab estimate.

If you are new and don't have a clue, then I would certainly recommend them or some company that can guide you through things until you have an understanding. 

The modest cash flow could be reinvested, eventually allowing me to build a portfolio of income-generating properties.I recognize your point about needing $2.5M–$3M in cash to consistently replace a six-figure income.

How will the partnership cash flow cover the HELOC payments if interest rates increase?

My company has gone through 3 dishwashers in the last 12 months and it has been an added expense.