Just as the subject reads, I am inquiring about when and how you purchased your second property after closing on the first... and HOW. The purpose of this discussion to get insight/tips from your experiences. To give you a little details, I spent March-September, absorbing knowledge from BP and real estate books. Mid-November, I finally closed on my first rental unit (targeting college students) as it is 2 streets over from my alma mater and I am curious to know how I should get started on my second property. In the midst of this, I earned my real estate license and now am an active real estate agent which I am super excited about! More income, more properties! In addition to sharing how soon you bought your second property after your first, I am interested in knowing HOW you did just that, for example, funding, etc. I used a conventional loan because it worked better in my favor, so purchasing with a FHA loan would be my next step, I wouldn't mind living in the unit.
Took me about a year to get the first one and basically Two days to get my second. Same day I closed on my first one, a realtor I’d been working with calls me up and says he’s got a property that fits my criteria that’ll be hitting the market in a couple days. He tells me what the seller wants, I️ offer what I️ want to pay and get it accepted, closed 45 days later.
I’ve funded with savings and investments.
Took me less than a year from my first. 10 months actually.
I saved a bunch from househacking and owner financed a 6 plex with 15% down.
Took about a week to get and fund 2nd and third. I used the same money from the first, plus profit from the first, and got 2 properties right around the same time. Then from those two it took a little longer to get the next 3 properties...if I recall, about 2 months.
@Joe Villeneuve thanks for responding! What type of investment was this? Did you do a flip on your first? Just asking because you said you used the profits on the first to buy the second.
Originally posted by @Jasmine Benford :
Joe Villeneuve thanks for responding! What type of investment was this? Did you do a flip on your first? Just asking because you said you used the profits on the first to buy the second.
All were SFH "flipping of the cash" of some sort. Don't think of it as flipping a house, think of it as flipping the "cash" you put into that house. Selling the property (flipping the house) is just one way to generate profits. It's just a "vehicle" your cash rides in and out of your deals. The more entrance and Exit strategies you know for flipping your cash, the more opportunities present themselves to you. This allows you to make "deals", not just buy/sell/rent properties.
@Joe Villeneuve interesting! thanks!
Saved the down payment for the first SFH and enough for half of a second down payment. Closed in June on the first SFH, then took out a HELOC on my primary in August, used the HELOC to fund the other half of the second down payment on the second SFH which closed in the beginning of October, and then used the HELOC to fund the entire down payment on the third SFH which closed at the end of October, and going to use the HELOC to fund the entire down payment on the fourth SFH, which I'm still looking for. All three properties have conventional 30 year mortgages.
It took 3 months for my second property. My first property I bought with 25% down and my bank account was wiped out. Then I heard about house hacking so I bought my second property with an FHA loan and 3.5% down. My third property was an owner occupied single family so I bought it with just 5% down. My fourth property I paid cash.
@Anthony Gayden Thanks! Househacking with a FHA loan is the route I would possibly take on the next one!