It wasn’t teh flashiest deal, but it’s been rock-solid through rising rates and market swings.

Financial Highlights•Acquisition Price: $72,000•Renovation Costs: $35,600•Total Investment: $107,600•Funds: raised from personal savings and private lender•Appraised Value: $160,700•Monthly Rent: $2,150•Cash-Out Refinance: $3,200 after paying off private lender and myself•Rate and Term Refinance: 30 yr amortization, 7.25% interest, 70% LTV•DSCR: 1.45% Lessons learned?

@Robby SanchezBridge loans are short term and if they default or mature in many instances the interest rate doubles - so make sure you have a very solid exit planI see many get a bridge loan and realize they don’t have the 25% equity in the deal to refinance to another loan and end up getting wiped or foreclosed on because they never researched what they needed to be at on the back end when they were refinancing.

This would allow you to maximize tax deductions at ordinary tax rates.

They may also require US credit history, although there are a handful that will not require a US credit report for an increased rate/ reduction in LTV. 

But in a market like yours, is there substantial difference between high and slow season rates?

I live in a very desirably town in upstate NY, refinanced at a super low rate, so will keep the house as a rental.

I had a “lender” tell me he’d give me a personal loan with a fixed 4% rate on a 30 year term at whatever amount I wanted because he would like to “build a relationship” with me. 

Life is on easy street when rates are 2% or I.O. 

In reality this strategy still works, but we are having to leave more of our own money in the deal because prices are high and/or rent won’t justify maxing the cash out refinance because interest rate is high.