New to the investment game and am looking for some great advice. I️ have not made my first purchase but am saving for that purchase. I’m thinking of my future and am not wanting to stop after just one investment. But I️ can’t seem to wrap my head around purchasing a second investment after I️ just used all my saving for my first investment. This is assuming I’m buying a multi-family that doesn’t need fixing up and I’m wanting to sit on and collect the passive income. Saving that 20% down payment for each purchase takes time and I’m looking for an easier way to add more property to my portfolio without going years in between purchases. Thanks everyone :)
Well are you saying it could take years in between purchase in your local market or a cheaper market?
Also not to burst your bubble but most multifamily investments will be 25 percent down unless you’re owner occupying it.
If you look in your local market and see (for example) that an average SFR is 250k, then I’d say you have two broad options.
1. You invest out of state in a cheaper market
2. You use other people’s money. This could be private lenders, hard money lenders or partners.
There are multiple strategies within these ides but that’s the general idea. The other way would be to combine say wholesaling or flipping and then use those profits to buy rentals. Or you could simply find s way to earn more at your day job.
Personally I chose the invest out of state route (significantly cuts down on time in between purchases for me at least). But that method isn’t perfect but neither is the other two.
Hope this helps
I also forgot to mention you could also househack and then move every year or two and do it that way. I personally wouldn’t want to do that, but a lot of people do that
@Jay Dekker If your loan is less than 750k it will still be possible to get someone to lend 80% LTV but you are going to be paying around 7% interest so keep that in mind when you underwrite.
Thank you everyone for your replies! You guys rock
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