I've managed to secure the loan for the new house without having to sell the old house first.

So we retired the sellers loan within 12 to 18 months.

Even after one year, that property may provide thousands of dollars worth of appreciation, you will pay down your loan and build some equity, and you can depreciate the asset. 

That translates into $208 to $375 per month on a $100,000 loan.

I would consider asking a slightly higher interest rate than market, because you are offering financing for a buyer that may not qualify for a traditional loan.

Hi Treza,Not sure where you are in the process there, but when your ready to exercise financing options please reach out, it's very difficult to find a ground up program for inexperienced borrowers without having an experienced GC sign on the loan with you which in turn is not easy to find. 

The DSCR loan would allow you to qualify based on the rent you are collecting and get up to 75% of the value (175 x 0.75 = 131.25k, minus 20k payoff and closing costs.You could get a line of credit or a bridge loan against it to borrow money, but it would be higher interest.

I do not have any loans through Flagstar Bank, but I would talk to them prior to moving it into the LLC.

We financed this deal using a residential VA Loan.

Great tools that get updated regularly.I am on the lending side of things and would be happy to hop on a call with you anytime to discuss financial strategies and help answer any questions you may have about nearly any loan product available to help you on your journey, even if they are not products my capital partners offer.We are all here to help you learn and grow.