How do i finance my second investment property ?

Question

How do I finance my second investment property. I was told I needed to put 25% down

Jordan Decuir · Answer

@Cerise Goldberg I’d first check with more than one lender, as the 25% requirement may be specific to that one lender. As someone here also said, I’ve also gotten traditional investment property loans with 20% down as well.

Tim Winter · Answer

It really depends on your DTI ratios and your experience. Most lenders start shutting down or pushing up their LTV once they start seeing risk flags go off.. credit score, DTI ratios, how comfortable they feel with your investment background, etc.

It's good to start developing a relationship with a local lender, as they'll be able to lower their restrictions the more business you do with them. I've known a few investors getting 15% LTV, but new investors the same banks says 25% no matter what. It all depends.

Best of luck, and good hunting!

Nathan Gilbo · Answer

The first question I ask when I find a potential property is if the owner owns it outright, if so I ask if they are willing to owner finance. This has helped me finance way more deals than I otherwise could of through the traditional bank means.

If they are willing you can literally negotiate any terms.

Sincerely,

Nathan Gilbo

If they are willing you can literally negotiate any terms.

Sincerely,

Nathan Gilbo

Colin Reid · Answer

I've bought investments with 20% down. There's no hard rule that it has to be 25%.

Cerise Goldberg · Answer

I have another question. Today I approved my first tenant . Should I put together my own lease?

Cerise Goldberg · Answer

Thank you ! I’m going open a heloc

Sebastian Hernandez · Answer

Explore the possibility of flipping homes using hard money lenders, cash-out and refinance, then rent the property.

Frank Hinck · Answer

@Cerise Goldberg

A- You can usually cash-out refinance your first property and get 70% equity out after 6 months however many banks are pulling back on that right now. B- Also seller financing instead is a great option and you can set the payment schedule terms. C- Many banks will take 20% down you’re an established Landlord / Investor

Sarita Scherpereel · Answer

Does your first property have 20% equity in it? Or something that would meet the HELOC minimums on (depending on the lender) ?

Cerise Goldberg · Answer

Across the street from where we live now .

How do i finance my second investment property ?

How do i finance my second investment property ?

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