Congrats on the February Close! Now that you're locking in on deal number two, have you thought about seeking private lending from persons in your network (e.g. family, friends, mentors, etc.)? I understand that many people in the BP community will either source loans from non-bank lenders or partner with someone who can fund the deal for interest (or even equity ownership in the property). There are certainly pros and cons to each. However, I think that if you were to lock in a private-party loan to fund the second property, you could repay the debt service once your mortgage for property number one is issued in a couple of months.
I'd be happy to hear your thoughts on the above. Regardless, best of luck!
Congrats on that first rental! AS @SeanSnider said, look to your network of family and co-workers and friends and BP for funding, but if you want maximum leverage - and of course if the deal pencils out - seriously look at hard money of Non-prime loans which will let you buy another rental based on its potential cash-flow and value and all you need to come up with is 20-30% of the price plus closing costs. It may be easier to get that 20-30% down payment money from a person in your network - maybe for a piece of the deal or as a loan or for part of the rent - than it could be for getting 50, 70 or 100% of the cost. Or if it is a small deal in OH maybe you know someone who can use a credit card to help you purchase it, then rifinance it into a non-QM (i.e. semi-soft money) loan. Lots of ways to use OPM to get into more deals and grow. Good luck!
I’ve had good luck with owner/seller carry contracts. You can negotiate interest rates and loan terms and don’t have to deal with a bank and bank closing costs.
@Grant Mitchell we have just closed our first property w/ a traditional loan and doing the BRRRR method on our second property in OH. We are looking at using a HELOC and have started paper work with PenFed.