Is 10% enough?
Hello!
I live in Washington state and want to invest in real estate but the markets are jus to expensive for me I have $25k to put down and another $25k to fix up a property. I used to live in Arizona and have an idea of the markets but is it going to be enough on a long distance deal?
Thanks!
50K can be. Are you looking for a turn key or more of a BRRR? I'd say you could look for a turn key with maybe light rehab. Just have enough reserves and have a team in place
Hi Connor, if you live in Washington $50K is enough for you to put down on a owner-occupied property for a house-hack. That's because you can utilize a low down payment loan for as low as 3.5%. Many of the clients I work with have $50K to start with and we make it work after we run the numbers from the rents that they can get coming in.
If you are investing out of state, $50K can go pretty far depending on what state you want to invest in. However, definitely do your due diligence. I'm an agent / investor here in Washington myself, feel free to DM me with any questions you have!
- Investor
- Austin, TX
- 5,507
- Votes |
- 9,861
- Posts
Why are you using your own cash to rehab the property? Leverage your money and let a hard money lender pay that.
Quote from @Connor Campbell:
Every market is different. I just saw someone put a house under contract for $25,000 cash. Other markets would require $100,000 just for the downpayment on a loan.
If your market is too expensive, look for another.
@Connor Campbell 10% can be enough, but depending on the market or the deal cash flow could be tight with that high of LTV. @Grant Schroeder w/ Academy has a 10% down investor product have used myself and for my clients and found positive deals in Boise MSA so it is possible just have to put in the work.
Hey Connor,
One BIG thing to keep in mind that not one person mentioned, is if you have 25K or 50K to put down, can you still afford that payment or will the property cashflow with that payment?
With interest rates the way they are right now, you either need to put down a good amount of cash to cashflow, or buy severely under market value. Still have to make the payment too!
Get with a broker or lender and run some numbers on what that payment looks like before you dive in. Low and no money down only works if you can make that payment.
Thank you for the shoutout @Chris Davidson! Appreciate you! @Connor Campbell I would be glad to hop on a call with you early next week if you'd like and talk through details of some of our creative financing options. Just let me know what works best for you!
-
Lender Nevada (#1914590), Colorado (#1914590), Washington (#1914590), Tennessee (#1914590), Arizona (#AZ LO-1022753), Arizona (#1914590), Oregon (#1914590), Idaho (#1914590), and California (#1914590)
- Movement Mortgage