Scaling Portfolio Financially

[Richard Graf]

Hello, thank you for taking the time to potentially help us.

My wife and I are looking to purchase our first rental property. I have 15k saved. I am looking in class C neighborhoods. The property I am considering is 40k. The tenant has been long term (13 years).

I have the deal lined up from a friend who is an investor. He is willing to seller finance over 10 years at 5% APR. I will have positive cash flow on month 1 with an 11.7% COC Return.

My question is, how do I purchase another one quickly? I will be depleting my saved up, down payment money.

My wife and I have exceptional credit, with minimal debt, and above average incomes; so the DTI ratio should be on point.

I have read about 'Portfolio Lenders'. Would that be my best route?

Thank you in advance for any advice.

-Rich

[Matthew Irish-Jones]

@Richard Graf

C class investing is high risk…. 40K Priced homes are also high risk, generally speaking.

Making your first investment a high risk investment is not a great strategy.

You can leverage 15K into a higher price point that will equal less risk.

This is a very long, slow game if you want to play it. Building wealth takes a long time. It took me 7 years to get enough equity in my first home to be able to refinance and get the ball rolling.

Make sure your first investment is a good one.