Hello everyone,I put an offer in on a duplex that needs a lot of work and will not pass conventional financing or standard FHA financing(the biggest reason being no heat source).

I want to purchase my first rental property with a mortgage instead of a conventional loan so I can take advantage of the homestyle/homeready programs which allow you to include renovations in the loan instead of conventional loans that require 15% down.

@Chris Mason I locked at 3.125 on a conventional second home loan yesterday with a regional lender.

This property will not qualify for an FHA loan it will have to an conventional loan. 20% down.

conventional loan How did you add value to the deal?

I can get a 75% ltv investment conventional loan at 3.675%.

I've also had a mortgage broker tell me that it would be $30-50 (which seems too low for an FHA / Conventional 5% down loan).Any help would be greatly appreciated!

Additionally, if you can't qualify for a conventional loan (or the property can't) then you have to deal with the options that are available to you, one of which is likely hard money.

You'll have enough to worry about adapting to your new CO & team.Btw, you may not like to hear this, but both conventional wisdom and my calculator say do not buy a house unless you intend to live there for at least 3 years, or you will lose more from transaction costs and repairs to spruce up a house to retail sale condition than you will ever gain from appreciation by owning the home. 

Conventional loan followed by construction loan and will cash out refinance at the end How did you add value to the deal?