Still educating myself before making my first deal, so this is a true question, not intended as a suggestion or recommendation:
Is this a good time to get creative with selling your houses with owner financing and/or buying and selling owner financing notes?
For example: You purchase and rehab a house for under 65% ARV. You therefore qualify for an HML loan (assuming good credit) which you can use to finance your project 100%, or close to it, and appear as a cash buyer. Or, even better, you are able to buy with your own cash. If mortgage rates are on the rise, you offer your newly rehabbed house with owner financing for less than the market mortgage rate.
Strategy 1: Keep the note, refinance to a fixed loan, and enjoy cash flow (if I pay 7% on $65k, and you pay me 6.5% on $100k, then I’m coming out ahead, no?). If this would work, it seems that the lower rate would be very marketable.
Strategy 2: Sell the note at a discount (if I paid $65k, sell owner financed at $100k, and sell the note for 80 cents on the dollar, it seems like I would be ahead here as well).
Again, as a disclaimer, I’m new and not sure if this is how things work. But if it is feasible, it seems like a nice way to deal with this changing market.