Financing my first rental units
Hello BP,
I'm just getting started. I've got all sorts of BP vids lined up to enhance my knowledge on how to get the financing for continually adding new units, and may get everything I need there, but wanted to also ask for the methods you used to get started.
Right now I have 0 units. My initial thoughts were to take a cash out refi on my house and acquire $200k for my first units. This will increase my mortgage, and the cash flow from the units will need to make up for it.
But even if I do that, I will end up at a point where I'm back to not having enough for a down payment on the next unit. So perhaps I should initially find the best, smartest way to acquire units without having down payment money in my bank account.
What did you do to acquire that next unit when you didn't have the down payment readily available? Also, is doing the cash out refi on my house a bad idea to get started?
I'm sure BP already has a treasure trove of information on this topic, and I will find it. But if you can spare some time, I would also love to hear from you here.
Thank you!