Closed my first deal! Now what??

[Account Closed]

Well, we did it! Finally! My partner and I closed a few weeks ago and we received a signed lease 21 days after closing. The deal was an interesting one that fell into our lap. My neighbor couldn't sell his house after 4 months on the market (someone submitted an offer but pulled out after not receiving the HOA packet in the 3 day window). He and his children had to move to CO by June 6. He came over complaining and worried about the process one night, without knowing I had been shopping around, and I explained to him that if there were no offers and once his contract ended with his realtor, I'd be happy to offer him an all cash deal. So, it was listed at $349k and appraised at $348k. I offered $303k and to close in 10 days which is what happened. Now the home is rented at $2,000/ mo and I have a $66/ mo. HOA bill every month and pay about $2,400/ yr. in taxes but no mortgage.

I'd love to hear some ideas on how to proceed with another deal from a financing perspective knowing the price point will be much lower.. $175k MAX. I know I can't pull equity out of the rental we just purchased (correct??) but my current home has roughly $56k in equity. I'm also open to doing this next deal on my own OR continuing with my partner. I welcome any and all comments and suggestions!

[Corby Goade]

I totally agree with @Ben Wilkins, this is exactly how we fund our deals. Delayed financing is great, however, not many banks know anything about it. You'll have to shop around quite a bit until you find a bank that is either in the know or willing to learn about it with or from you. Basically, if you pay all cash and the transaction is at arm's length, you can pull 70% of the LTV out immediately after you close. If you can get an appraisal to show that you have enough equity, you can pull 100% of the purchase price out. This wouldn't be the case for your current rental, but you could do that with your next deal if you buy right. Good luck!