Wednesday, March 12, 2008

Rehab to rental vs straight purchase

investors should consider using a rehab loan to acquire rental property. consider 95 - 100% loan to cost vs 80 - 90% on conventional loans.

after the rehab, simple refinance at 70 - 75% LTV. (you get better terms and may be able to get back your original 5% down payment)

Why: you can do deal after deal vs using your capital up on 1 or 2 deals.

www.texasinvestorloan.com

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