Looking for the best strategy to fund my first rental.

Looking for the best strategy to fund my first rental.

Investor · Manhattan · Member since 2018 · 55 posts · 35 votes

I am trying to get my first rental property, however I do not have any funds for a down payment and closing cost. I am considering wholesaling as a way to provide funding for my purchase. Is this a good option for starting out? 

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  • Rental Property Investor · Los Angeles, CA · Member since 2013 · 1k+ posts · 1k+ votes
    7y

    @Jonathan Beaumont many say finding deals (ie wholesaling) is the most difficult aspect of RE investing.  It takes some money to market for leads, lots of hustle, follow up, time, etc. Have you thought about house hacking? This is where you buy a 2-4 unit, live in one of them and rent out the others and use the rent paid by the tenants to ideally cover most/all of your expenses. You can buy a 2-4 unit if you occupy a unit with ONLY 5% down! You could also do that in a house (ie buy and rent out bedrooms). Coming up with 5% down for your first property is more easily reachable imo. Search "House Hacking" and you will find tons of content. All the best! 

  • Investor · Manhattan · Member since 2018 · 55 posts · 35 votes
    7y

    Thank you Brian, I will look into this strategy. Are there any other strategies that should also be considered for someone just getting started?

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