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Updated over 2 years ago on . Most recent reply

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George Duchatelier
  • New to Real Estate
  • Ohio
26
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53
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PURCHASING RENTALS WITH NO/LITTLE MONEY DOWN. Doable?

George Duchatelier
  • New to Real Estate
  • Ohio
Posted

As of right now i have 2 rental properties in Youngstown and Niles and closing on 1 more next week. Needless to say my capital is pretty much gone.

I found 2 SFH in the range of 49k-59k I would like to attempt to buy. Buying both at the same time would be cool. One is tenant occupied, so its instant cashflow on one of the properties. How do I get this done with no money or little money down? Are there any options i may not be thinking of? I know of DSCR loans and conventional loans. I know DSCR lenders can only do 75k loans or more. I heard of seller financing and Subto, but i don't know enough on how to structure that style of deal. It seems easy enough on these Youtube videos but I don't know how it works

Im sure i know the answer to my question, but i feel like theres a ton of people here that can give me ideas or know how to get something like this done. Please help!

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Owen Dashner
  • Lender
  • Omaha, NE
1,043
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1,003
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Owen Dashner
  • Lender
  • Omaha, NE
Replied

I came here to say exactly what @Chris Levarek said.  Split your time between sourcing properties and private lenders/capital partners.  Lots of money out there looking for good projects.  Make sure you put together a short presentation or overview the deals you already own as a proof of concept that you can use when talking with potential partners and lenders.  

Another option for you is to use hard money into a BRRRR, or a combination of hard money/private money to acquire and rehab deals, then refi into perm financing. Find local hard money lenders at meetups and REIA's in your area. Talk to other investors there about who they use to fund deals.

You could also wholesale/flip some properties to build up cash reserves to allow for more purchases. Flip one, buy a rental. Rinse and repeat - that's how I got started.

Just remember to take consistent, deliberate action toward your goals, whatever they are.  Try to sit down for coffee/lunch/beer once a week with someone who is completely new to you in the real estate space.  

  • Owen Dashner
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