Hello BiggerPockets! I was wondering what avenues you’ve taken to fund your initial investment property (preferably buy and hold)? When you were ready to purchase your 2nd, 3rd and so forth properties, what financial hurdles did you face and how were you able to overcome them? I’m trying to get a good insight so I know what avenues have worked and not worked for long term financing. Thank you in advance for your input!
The best thing you can do is focus on getting your next deal. After you close deal 1; then you can start worrying about deal 2. :)
The best thing you can do to solve this problem, is to think of your next deal, before you do the current one. This way, the current deal will lead you into your next deal, and so on.
I got started by purchasing a primary SFR. However, if I were to do it all over again, I would have gotten a mult-family ( <5 units) and lived in one the units. In my opinion, this is the fastest way to supercharge your savings in order to get into the next deal. It also gives you landlording experience for a relatively low downpayment ( < 5%).
@Ivan Barratt @Joe Villeneuve @Frankie Woods I thank you for your input! I'm trying to stay a few steps ahead so I can put a long term game plan together. Sure I don't expect it to work out to plan all the time, but having a plan B & C is just me being more prepared for the what if's.
@Frankie Woods I'm mainly interested in multi-family as my tenants would be under one roof and I feel that I'd be able to pay the property off quicker due to multiple rents. I've recently started to run across more triplexes in my area and found one that may look good on paper, but I'm not quite sure of because of the renovations that are needed.