Investing now or waiting for a larger down payment

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Investing now or waiting for a larger down payment

Samuel Nelsen
Member since 2024 · 2 posts · 8 votes

Hello all, I am looking at buying my first rental property and I have a $20,000 down payment saved up for it. Is it enough money to safely use it to invest in a property out of state for my first time. Any advice will be greatly appreciated. 

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Caleb Brown
Real Estate Agent · Kansas City · Member since 2018 · 4k+ posts · 3k+ votes
7mo

You need more saved up. 20K is a 80-100K property (going the conventional 20% down route). In my market (which is a Midwest one) that is a D to C- area. The 20K also doesn't include closing costs, having reserves set aside and any repairs or make ready that is needed. I would look at house hacking or potentially owner financing. Definitely be careful of buying a property OOS using all your funds. Spend time now learning, saving and getting rid of consumer debt (if you have that). Attend meet ups and network locally where you are.

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  • Adam BartomeoBusiness Member
    Real Estate Broker · Cape Coral, FL · Member since 2015 · 2k+ posts · 1k+ votes
    7mo

    For the long term play it is always better to start sooner than later - law of compounding interest. For the short term, the down payment doesn't matter, the cash flow is what matters. As long as it cash flows and then buy now!

    [email protected]239-339-3969
    Bartomeo Property Management4.7150 Reviews
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  • Marc RiceBusiness Member
    Real Estate Agent · Columbus Cleveland Dayton, OH · Member since 2018 · 2k+ posts · 1k+ votes
    7mo
    Quote from @Samuel Nelsen:

    Hello all, I am looking at buying my first rental property and I have a $20,000 down payment saved up for it. Is it enough money to safely use it to invest in a property out of state for my first time. Any advice will be greatly appreciated. 


     If you are looking for a multi-family property, my advice would be to save more. You can still get a single-family property under $100k in a decent neighbourhood in markets like Cleveland & Dayton in OH

    [email protected]614-363-2787
    Marc Rice | Investor Friendly Agent at Reafco Tailwind Team574 Reviews
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