Newbie financing 1st deal

[Jeff Brown]

Hey guys, I've recently came across 2 duplexes that are exactly what I'm looking for. The owner is selling at a great price. All four units are occupied and it cash flows great. The only problem is that I'm a little short to cover the entire down payment. Has anyone ever financed the down payment? I ran some numbers and if I get a decent rate I will still have enough to save for expenses but, my cash flow is a lot lower. Any feedback is appreciated! FYI house hacking is not an option. Jeff

[Brie Schmidt]

Originally posted by @Jeff Brown:

Hey guys,

I've recently came across 2 duplexes that are exactly what I'm looking for. The owner is selling at a great price. All four units are occupied and it cash flows great. The only problem is that I'm a little short to cover the entire down payment.

Has anyone ever financed the down payment? I ran some numbers and if I get a decent rate I will still have enough to save for expenses but, my cash flow is a lot lower.

Any feedback is appreciated! FYI house hacking is not an option.

Jeff

 A lender is going to require you to have the funds for 2 full bank statements to count it.  When you apply, you will submit the two most recent statements and it can't be one there.  You will also need 3 months of payments in the bank and closing costs to qualify for the loan, so if you are going to take a loan make sure it is enough and fast 

Also be aware of how it will effect your DTI. Let's say the loan payment is $500 - that new line item will lower your approval by $100k