Closing on home next week! Need Financial advise !!

3 Replies

  So I am closing on a house this week which is my 1st investment home and will need about 6-8 grand of repairs which I do have the money for.  I am well over 20k out of pocket  putting 20% down, closing and so on. My question is should I just pull out another loan for the repairs and have the monthly cash flow of rent pay for it ?  What strategy should I use ? I want to purchase another home late quarter and spending the 6-8 grand out of pocket will affect my down payment money on next purchase as I begin to save.  Also where is the best place for loans ? I would assume credit union , USAA ?  I have 401k but do not really want to pull from there unless I really have to. I have been reading  a lot and just seems to use someone else's money instead of yours.

Help!

I'm still looking to find my first investment but I'll be putting 25% down and just trying to get the best deal I can. I'd be a bit leery of taking out multiple loans on my first single property. It's a personal choice, but I'd probably go more conservative before getting into a lot of leveraging this early. 

Same for the 401... not a bad idea once you have a couple properties under your belt and know things are going well. But, what if your first property has unseen issues... bad tenants early on, etc. 

Just my two cents. Good luck and let us know how it goes either way. 

Thanks Bryan for the input

if your debt to income ratio stays low enough you could borrow the money but if not it might be a good idea to pay cash or do 50/50 for a smaller payment