@Tina Rubin as an occasional lender myself, I think the second option (new deal/property) sounds a little cleaner and more of the traditional lending scenario - if I’m understanding you correctly.Just make sure you have a good understanding of the higher rate you’ll be paying to the HML and make sure you can still make your numbers work with that higher payment amount.A hard money lender’s main concerns will be the value of the collateral relative to the loan amount (LTV), and whether your estimate of the project cost is accurate.The HML will definitely want you to bring a substantial amount to the table as a down payment to keep their LTV low (65-70% is common), so if you need to refi your current property to get those funds then that might be something you’ll need to look into.If it was me I’d probably stick with a traditional fixed loan on the first property and start out with a private/hard money loan on the second, until it’s rehabbed and stabilized, and then refi out with another bank loan.

Seems like we have a lot in common. 

The utility statement for the month of June that comes out on July 1st, has meter readings from 04/15- 05/15.But it also has other items which are current to June like common area electric, internet fee, utility billing fee etc. 

The owner lives on site, has owned for 15 years, and pays ALL tenant utilities (not common in Indianapolis).

As his health is failing, I am stepping in and taking over.

Hi All :)I am new to the whole world of property investing and the Bigger Pockets community.It is common to hear many success stories of people with 10+ properties.

Hi All :)I am new to the whole world of property investing and the Bigger Pockets community.It is common to hear many success stories of people with 10+ properties.

Re-plumbing is something you won't want to wing but you can't hire out what you can't pay to have completed.Sometimes we have to catch-up to the opportunity...repair and build your financial health - and then reward yourself by starting this new business.Just one opinion...you'll get a lot of others to weigh in!

A normal FHA purchase means the property has to meet all health and safety code violations.

At the moment you can only terminate a rental lease (even month to month leases) for health and safety reasons.