Pros/Cons of using private money for downpayment
Hi all,
I have recently stabilized my very first duplex in Troy, New York (near Albany) and am very excited to be officially in the landlord game in this area!
Recently I saw the duplex that is DIRECTLY across the street from my property come on the market, and I would love love love to jump on the opportunity to buy this property as well.
One problem - I used all my cash fixing up the place I have! So even though I could qualify for new financing based on the anticipated rental income of this new house across the street, I don't have enough saved for the 25% downpayment anymore.
What do you do in this situation? Are there people who would do a private loan for just the downpayment amount? And where would I find them if they do? What are the drawbacks to something like that?
If this is a dumb idea I also welcome that feedback!
Thank you as always,
Grace