Looking for Opinions

[Mark DiRenzo]

Whats up guys! I have a situation that I need expert opinions on since I started out and dont have a mentor in the field! Im looking to buy another rental property in a prime student rental location for $250k. Down payment would be $50k. I only have $40k in savings and currently have one rental with about approximately $80k in equity I am able to pull out if needed. Do you guys think I should use some of that equity in a cash out refi to purchase the other home and take a hit to income on my other property with a new mortgage, or should I look for a a lender willing to do 10% down. Either way it seems like passive income would take a hit. Do you guys have any advice for me in my position - finding it hard to grow my portfolio with my current situation and home prices near me. My first rental pockets about $9k a year in total before taxes.

[Ryan Thomson]

Hi @Mark DiRenzo - do you have the luxury of being able to house hack? You could buy this "college rental" property as a primary residence. Live in it for a year and then move out and turn it into a college rental. This way you would only have to put 5% down.