Financing Options on FIRST RENTAL property

[Kasey Gourley]

Hello BP Members,

I am looking to buy my first rental property, but do not have enough capital to put 20% down plus cover closing costs. I have analyzed multiple deals, looked at what comps sold for in the area and what current rents are in the market.  After running the numbers multiple times, looking at best, worst, and base case scenarios the deal still makes sense. The property is a duplex and each unit is 2 bdrms 1 bath. The duplex currently rents for $1,000/mo ($500/ea), while market rates for similar properties on the same street are between $650-750 per unit. Even at the current below market rates the deal will still cash flows $130/mo per unit, after factoring in 10% vacancy and 10% maintenance/capex. 

Considering I only have the ability to put down about 10% at this point, what other options do I have for acquiring this property outside of owner financing since this property doesn't need an extensive rehab and is currently occupied with tenants. Below you can find additional details about the deal.

1,680 sqft Duplex w/ 2 bdrms 1 bath units

Purchase Price: $85,000

Rental Income: $500/mo per unit ($1,000/mo. total)

Cash Flow: $275/mo

Cash on Cash ROI: 19%

Market Rent: $650/mo. per unit

Currently Occupied

Capital Available: $10,000

Thanks in advance for your help and advice!