Can it be done

First off, I just want to say what’s up gang. I’ve been checking out this website for a couple of weeks and I love it.

I have invested in commercial properties, but I am now looking to get into residential. I think I found my first deal, but I don’t really want to put any of my own money into it. I’m thinking hard money, but what could my terms be?

Here’s the scenario:

Single family home
Purchase price 35-40k
Only needs minor repairs (paint, carpet, etc.
I estimate ARV to be 75k (conservative)

I want to use this property as a rental so I need good terms for the long term.(no prepay, low costs, rate preferably 12 or less)

About me:
Mid Score:605
Income:32k salary plus commish(50k total)
very little debt.

Would this be possible or am I just dreaming and would I need to put 20% down?

Thanks in Advance,


I would flip it, pocket the cash and THEN go look for a rental. with cash in hand you should be able to find favorable long term financing for the next deal.

Thanks for your idea, however, this home is in Detroit. Flipping is not really an option because it may take 12 months to sell.

Do you have cash reserves?

Although you can feasibly secure 100% financing for cost of purchase + repairs + closing costs (using a 65 or 70 ARV program), you’ll still need reserves to fund the rehab before being reimbursed by the escrow account.


Scott Miller