How long did it take to buy your 2nd property? How'd you fund it?

Question

Hi All!

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.

Thank you!

Jasmine Benford · Answer

@Anthony Gayden Thanks! Househacking with a FHA loan is the route I would possibly take on the next one!

Joe Villeneuve · Answer

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.

Jason G. · Answer

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.

Jasmine Benford · Answer

@Joe Villeneuve interesting! thanks!

Joe Villeneuve · Answer

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.

How long did it take to buy your 2nd property? How'd you fund it?

How long did it take to buy your 2nd property? How'd you fund it?

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