What kind of terms can you go for with a investment property of 3bed/1bath brick single family home…$25,000 w/paying tenant at $700 a month… if this is your only way to buy the property for now…
Hi,
A “Hard Money Lender” will generally loan you 65 to 70% of your purchase price.
Interest rate will vary between lenders from 12 to 18% depending on the points they charge.
So you would have to put down at least $7500 in cash plus buyers side closing costs.
I would not use hard money for “Buy & Hold” so you have to know what you would do to flip it and how long it will take as your cost to hold will run $350 to $400 per month. I would think you need to list it for $40k and sell above $35k to make $6k since you did not post anything about your exit strategy this is strictly an example.
Good luck,
GR