How to purchase my first (or several) rentals

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Hey, Biggerpockets people! I haven't been on bigger pockets for long, but I'm really excited about what real estate can do!

Here's my question - I have a private money lender who is willing to provide $40,000 at 8% over 20 years(or shorter). Would it make more sense to purchase one property like a cash deal, purchase multiple properties with the private money as the down payments using the BRRRR method, or purchase a property using all of the private money as a down payment(then probably BRRRR with it)?

It seems that having to pay interest on the down payment is a bad idea, but if the increased cash flow allows for it, maybe it could work? I'm not sure, but you guys probably do!

Thanks for the input! 

If you can afford it not using an 8% loan would be ideal, there are people who make it work but the risk is definitely more.  What would you do during a vacancy?

Of course it really depends, but I think the BRRRR method is the best way to go about acquiring a rental portfolio, especially if you have a private money lender.

I would look for the BRRR deal either way. The interest rate on the private money really wouldn't bother me. Just make sure it makes money for you, even with higher interest, then plan on BRRRing out to a new lower interest loan. Then you can use the same 40k private money loan over and over to buy more deals.

@Garrett Diegel that is exactly what I’d do. Continue brrrring and flipping that money over and over. Sometimes you find deal where the first R (rehab) is minimal or none and you can accelerate your growth. Make sure you are left of with the cashflow you want after paying your private money guy and everything else