Almost anything that has a guaranteed rate of return makes me want to scream and run the other direction, but this seems different. 

Most hard money work as follows:•Rates: 9% to 13% (Most Deals are 11-12%)Terms: up to 36 Months (Most Deals are 6-12 months)Fees: 2-4 points(%) of loan amount paid at closing (Most Deals are 3 points(%))Minimum Loan Amount: $50,000 (For loans less than $250,000 $2,500 minimum fee)Max Loan: 65%-70% of After Repair Value(ARV) 100% Rehab Financing Available (Require 20% of purchase price down payment or cross-collateral)Closing Timeframe: 48 Hours - 3 Weeks (Most Deals are 2 Weeks)NO PRIMARY RESIDENCES, NON-OWNER OCCUPIED ONLY, BUSINESS AND COMMERCIAL USE ONLY.

The interest rate is between 7.95% and 9.95% depending on credit score.

If they were going to charge me 2-3x the market rate for this service I would have like to know in advance because then I would of made the cleaner arrangements. 3.

Hey @Justin Williams,I'll start by saying even the most flexible loan scenarios will look at credit. how it relates to the loan process, however, will differ depending on which loan type you go with. my gut punch reaction in this is that your credit score is more about limiting your LTV due to the subject prperty being a multi-family, or potentially driving the rate up so that you no longer qualify (rates are higher on MF than on SFR typically)....it also could be about how your lender is calculating (or not calculating) the rental income coming from the different units.

The Milwaukee Mill Rate for 2023 was $26.07 per $1,000 of assessed value (2.6%).

But, keep in mind Redfin assumes the amount you put down, the interest rate you get and a couple of other charges.

However, with the rise in interest rates, I am fairly certain that a threshold ratio of 1 will not be met. 

We do our daily rate and then give about 20 to 30% discount for renting a month at a time.

Hi Rob,If you believe the HELOC will be sufficient for the purchase & rehab, it could make sense to use the HELOC given the interest rate is lower than a hard money.