IM A BEGINNER AND WAS WONDERING AFTER I GET MY FIRST PROPERTY TO HOLD AND RENT. HOW DO I GO ABOUT BUYING THE NEXT, WILL IT BE 20% DOWN, AND WILL I HAVE TO PUT 20% DOWN ON THE NEXT AFTER THAT. THAT WOULD BE ALOT OF CASH. HOW CAN I STRUCTURE THIS
QUESTION ABOUT FINANCING PROPERITES ONE AFTER THE OTHER
GENERALLY speaking you are going to have to come up with 20%. Don’t pigeon hole yourself into thinking that it has to be cash though. You can use equity in other properties, you can use the seller’s money, etc. Good luck.
Open up a HELOC on your first rental property. Use that to put down on the second.
Hopefully you bought/ your first property at a significant discount such that there is enough equity to open up a HELOC.
You need to buy at a large enough discount and take advantage of no seasoning rules. What a lot of my customers do is use HML’s or private money to close the first time and then refinance into conventional lending using the ARV.
Remember that if you take on more debt from the first property, you have be sure the cashflow is enough to cover the added debt.