How to purchase my first (or several) rentals

[Luke Frauhiger]

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! 

[Andrew Syrios]

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.