Advice on financing my first 4-plex

[Sergio A. Molinar]

Hello All,

I would like some advice on financing my first multi-family to BRRRR. I am cash poor at the moment but I do have two rental properties (SFH) and a primary residence. I would like to buy a 4-plex like yesterday. I have access to a little bit of private money and hard money. What route would you suggest taking to acquire this property?

Can I borrow hard money for the downpayment and just BRRRR once I'm done.

What route would you guys recommend?

Thanks in advance.

[Nancy DeSocio]

Hi @Sergio A. Molinar,

Do you have any equity in your primary residence? If so, you can take out a Home Equity Line of Credit (HELOC) to put towards a down payment for the 4-unit. The interest rate is adjustable on a HELOC, so it's will fluctuate, but I'm guessing it will be a much lower interest rate than a hard money loan. Just a suggestion but interested to hear how others will chime in on this!