Updated over 4 years ago on . Most recent reply
Financing for First Rental Property?
Hey all,
I would love to get some information or pointers as to where I can find private financing for my first rental property. I have a unique set of circumstances as I'm still a full-time student and I would love to get my first rental property under my belt. I've been told by plenty of people just to wait until I'm a few years older and I have more savings, but I am really wanting to get started as soon as humanly possible.
Ideally, I am looking at private financing to purchase the property and then eventually refinance the property since I know the interest rates will be higher and I would like to pull some cash out to possibly fund another deal. My main concern is the LTV requirements on investment property loans. I can comfortably put down 10% at the most, but that would leave me little room in my savings for rehab or any other expenses. I am thinking that in order to make this work, I'll have to temporarily borrow money for my down payment from a family member but for obvious reasons I'm trying to avoid that if possible.
If anyone knows of any connections for private money lenders or other investors who might be willing to finance a good deal with a smaller down payment, I would really appreciate it! I know I'm asking for a unicorn here, so if y'all have any other ideas about what I can do to get the ball rolling (ideally not house-hacking) I would greatly appreciate it. Thanks from the bottom of my heart to everyone on here who's been so kind as to give me advice thus far!