Hello everyone its December 15, 2020. 

I wanted to cover a question/strategy I've seen discussed in the past to no avail so I'll tell my current situation in hopes that it helps new investors...

My first Property ---

December 2019.. I used an FHA loan 3.5% down to owner occupy a 3 unit. This 3 unit nets 30k/year since i've moved out. It doesn't need any immediate renovations so I have since let the building cash flow meaning I hold very little equity.

My second Property ----

June 2020.. Due to work I had to leave my 3 unit. I purchased a duplex a few towns over at 15% down conventional and have completely house hacked my side.

Now that I've exhausted my FHA, and currently have a duplex im house hacking... I'm stuck with how to obtain my next property. Do I just let my 3 unit cash flow the 30k/year until i can afford 20/25% down? I could find a seller finance but thats very rare in my market. I could renovate the 3 unit but theres very little room that could get me to 20-25% equity and even then it would be a hard time getting through underwriting as i have the 15% down loan out as well.

Please let me know if anyone has any advice. I'm eager to obtain more units not but it seems my best option might be to just wait and let the 3 unit cash flow a few years to afford my next 20-25% down loan.

Thoughts and advice please

You might have a few options worth looking into:

- Regional Bank or Credit Union portfolio loan.

- Personal vacation property (10%) down and rent it out some to cover the payment (look into the legalities on this loan)

- Hard money for a flip and use the profit for your next rental. (The reason a lot of rental investors also flip)

- Subject-to mortgage (some risk here if you don’t do it right)

- Owner Finance (as you mentioned)

- Partner with someone to increase your cash coming in and build your down payment faster.

- Be patient and build it with cash flow from your current properties. I like a strong equity position... and you might find a cash deal once you have the cash. Those cash flow like crazy...

just some food for thought...

@Jayson Kuhn shoot me a message and I'll send you a local lender that you can speak with. You should be able to get another owner occupied as of June 2021. If it takes 1.5 months to close on a property, you could safely start making offers by March/April. Can you get your finances to a place that you could make offers by then (in addition to taking advantage of a lower downpayment owner occupied loan)?