Because there is more risk that generally comes with higher interest rates. 

What is your current rate?   

I've seen many investors get burned because they failed to understand their hard money loan terms/rates, even if they did acquire what should have been a home run deal. 

It's effective interest is similar to Mezz-debt at current rates but a bit lower.   

Your monthly corporate rental rate is $2800 per month and you have an 80% occupancy rate. 

(Anything that isn’t your primwry first is only tax free on a pro-rated basis.)I don’t know how you could swing it but…If they gifted you the kand they would avoid their capital gains tax.

We cap the rate for utilities and actually added about 10% above our normal average this past year due to rising utility costs in our area for gas and propane.  

I would find a loan officer that does both conventional and FHA renovation loans to compare which has better rates and terms for your situation.

If your goal is to maximize cash flow, look for properties where you can live in one unit and rent the others at market rates.

.📊 The 24-Hour Results:✅ 695 New Contacts✅ 100% Email Open Rate✅ 15 House Tour Requests✅ 2 Applications Submitted🔥 The Strategy: Livingsmith Partnership Database ApproachOn Friday, January 24, 2025, we launched a simple but highly effective outreach approach to attract potential tenants and partners.