Rental Property Investor · Grand Rapids, MI · Member since 2021 · 25 posts · 9 votes
I just purchased my 1st duplex in January. Renovated and tenants area now paying 100% off the mortgage.
What is the best way to acquire a 2nd rental property? I've already used my FHA so I'm thinking conventional 20% down?
Which route do I go to fund it? I’m starting to work more hours at my job to save 40k-50k. It’s not going to be easy but if there’s other routes to achieve capital too that’s easier I’m willing to hear it.
The best path (if moving is an option), is to buy a new primary home with 5% down and go conventional. Rent out your existing home. Primary home loans require less down, have lower interest rates, lower PMI, and its the best overall financing option.
I'm a big fan of hose hacking. I house hacked 3 times in less than 3 years. 2 duplexes and a triplex. We were able to utilize qualifying life events (job change, new baby on the way, etc.) to keep purchasing properties at primary home rates.
I would personally keep saving, ask your lender what options you have to move sooner and potential look at getting a HELOC.