.- Limited diversification: Using all cash might restrict your ability to invest in multiple properties.Hard Money LoanPros:- Faster approval: Hard money lenders are typically more concerned with the property's value than the borrower's creditworthiness.- Flexible terms: Hard money lenders might offer shorter loan terms, allowing for quicker returns.- Access to financing with poor credit: Investors that have lower credit scores might still qualify for hard money loans.Cons:- High interest rates: Hard money loans often come with higher interest rates, 10-18%, and fees.- Short repayment terms: Repayment periods are usually short, which can lead to higher monthly payments.- Short-Term Nature: If your property isn't sold or refinanced within the loan term, the high interest can eat into your profits.FHA LoanPros:- Low down payment: FHA loans require as little as 3.5% down, making it easier to get into real estate investment.- Government backing: FHA loans are insured by the government, potentially making lenders more willing to approve loans.- Assumable loans: If you sell the property, the buyer might be able to assume your FHA loan.Cons:- Property standards: FHA loans require properties to meet certain standards, which might limit options for investment properties.- Mortgage insurance premium: You'll have to pay both an upfront and annual MIP, increasing your costs.- Residency requirements: FHA loans are meant for primary residences, so you can't use them for investment properties unless you are house hacking.Traditional MortgagesPros:- Equity building: You start building equity immediately with a larger down payment.- Lower Interest Rates: Traditional mortgages typically offer lower interest rates compared to other financing options.Long-Term Stability: Fixed-rate mortgages provide predictable monthly payments over the life of the loan, which can help with budgeting.- Property options: Traditional mortgages allow for a wide range of property types, including investment properties.Cons:- Higher credit score requirements: Traditional mortgages often require you to have a higher credit score.- Larger down payment: The 20% down payment can be a significant upfront cost.

It might help to consider bringing in a partner with age/length of time in credit report to help establish credit worthiness with a lender to get a better rate with a lender.

But, I simply don't know the market well enough for non-metro accessible single family homes as a rental asset--both in terms of strength of the market, tenant creditworthiness, etc.

That would make me wonder why you’d want any financial dealings with people who aren’t credit worthy to get their own loan .

In California most hard money lenders are following a 3 points 12% pricing, and they all have difference in going up and down on the pricing depending on many factors, like LTV, credit worthiness, qualify of collateral, down payment, etc etcAs for the 2nd option, again Matt brings up very good points that you should clarify with your future partner if you will do a partnership.

My thought is, if they know someone with credit worthiness is assuming the loan, they may be more likely to stop the sale, and would at least let me know they would call the loan due if they weren't on board with that.

So that 60k you have could easily got to 100-150k depending on your credit worthiness.

They will also look at your company's financials to determine its credit worthiness and financial outlook.

Credit to the company (your LLC) is based on the company's credit worthiness.  

To develop a model, the lender selects a large random sample of its borrowers, analyzing characteristics that relate to creditworthiness.