The value add could be a mismanaged property, a property plagued by vacancy (marketing deficiency) a property that can be broken down into smaller units hence growing NOI, etc.A move in this direction would serve multiple purposes:a) Buy a deal you could generate greater NOI than a similar 'straight' leased investment.b) Allow you to gain some experience managing and marketing CRE space.c) Provide you with a track record in commercial which conventional CRE lenders look towards when loaning on CRE.

I'm worried because I really can't afford a 40,000 down payment on a conventional loan.  

The private lending could finance only the down payment and the rest could come from a conventional loan, thought you may need to use a portfolio lender as some banks want you to have some skin in the game.

I read somewhere on here that you couldn't get a conventional loan under 50k.

I have 30 year conventional loans on both.

Sorry if this is a bit conventional.

If you are looking at a conventional investment property mortgage, then you will need to put at least 25% down (i.e. $62.5 for $250k home).

This summer, I have a new job and am fortunately approved for up to $375 for a conventional loan and $425 HOA loan.After looking for over a year I am finally under contract on a a triplex in north east park hill at the intersection of MLK & Leydon. 

Currently hold a corporate job which I plan on getting rid of within the next year thanks to my new career as a Real Estate Investor.Although I’ve just recently started my professional career as a Real Estate Investor, I’ve received extensive professional training from long time experts in the field, successfully closed a couple of deals of my own already; as well as helped Cash Buyers find great deals in my area meeting and exceeding their expectations.My immediate goal is to specialize in wholesaling deals, finding the best deals for my cash buyers per their personal criteria.My short to medium term goal is to buy and hold at least 5 or more rental properties consistently producing the highest cap rate possible with a double digit cash on cash return within the next 5 years.

Why a hard money lender vs conventional?