Hello, my name is Cole. I just turned 22 and I currently have one rental property which is a duplex. I found several properties near my current property which are great deals. One of which I desperately want to buy. I’m really struggling getting financing or another way to purchase. I’ve been running though different purchasing scenarios/strategies but none seem to be working out. I’m currently trying to contact the seller to see if they are open to seller financing. The numbers are all good, positive cash flow, the issue is getting the property. Does anyone have any ideas that may be able to help? Thank you very much.
What type of property is it? What are the numbers on the property? The strategy to fund a SFH vs multi is different. It looks like you're house hacking currently which is really cool.
First off, awesome work at such a young age! I wish I had started that early! One option that I used at 24 was partners. I found two like-minded buddies and we all went into partners on a deal. Also, have you explored the options of hard-money and then BRRRR into a traditional mortgage through a local bank? Keep pushing for seller-financing as well!
Main thing though, instead of "I can't afford it" think "How can i afford it?". There's always an option out there! Sometimes its as simple as not taking "no" as an answer from a lender.
Check the BP forums for partners in your area!
Also, do you have a house of your own? Maybe look into HELOC's? That's a financial tool I'm planning to utilize for my real estate game.
Thank you all for the responses, I really appreciate it! @jaronwalling The property is a Triplex. Asking price is $225,000. Current rents are totaling $2800. The property is cash-flowing. I have a lender that will give me the loan, however I do not have the $45K down payment. I am currently looking for sideline money for the down payment that would require a second "mortgage" and I would probably offer a 3 year balloon to the side lender. Of course this is a little against the rules but I think I have a way around it. Even with the second mortgage on the down payment, the property still has some cash flow and that is accounting for vacancy, minor repairs, and capital repairs.