Hey everyone. There seem to be a lot of d & 4 unit buildings in my area (Pittsfield,Ma.) that need work. They’re around $60,000. A few unofficial comps look like the ARV is around $130,000. I’d like to rehab & rent these. Is a rehab loan different than hard money? Which would be better? I have a FICO of 680 - 700. Is it possible to finance these types of properties with decent terms? Thanx.
Mike
It depends on your idea of “decent.” The last time I looked, the Freddie rehab loan was allowing up to 90% of purchase+rehab costs on investment properties. Rates were pretty decent - in the 6’s. If you go to 90%, you’re going to have to deal with mortgage insurance. One nice thing is the loan has a 30y term, so you don’t have to worry about getting it sold before the hard money lender sends Guido to pay you a visit.
Take care,
Steve