Starting rental business

Madison, Wisconsin
Buying & Selling Real Estate
2moFollow

Starting rental business

Evan Friesen
Member since 2026 · 3 posts · 0 votes

Looking at getting started we don’t have enough for the initial down payment of 20%. We are in our low 30s and own a home. Our bank suggests we can take a lien out on the house we own. Or do we wait another 1.5 years to save the money ourselves. We currently have approximately 30k to put down. we are looking to start with a duplex

We appreciate anyone recommendations and advice.  

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Jaycee GreenePro Member
Real Estate Consultant · St. Louis MSA · Member since 2024 · 3k+ posts · 727 votes
2mo
Quote from @Evan Friesen:

Looking at getting started we don’t have enough for the initial down payment of 20%. We are in our low 30s and own a home. Our bank suggests we can take a lien out on the house we own. Or do we wait another 1.5 years to save the money ourselves. We currently have approximately 30k to put down. we are looking to start with a duplex

We appreciate anyone recommendations and advice.  

Hey @Evan Friesen, welcome to the BP Forum! What is your price range/down payment amount? Are you looking for turn-key properties or something along the lines of a "fixer upper"? Are you looking for properties in your local market or somewhere else?

[email protected]
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  • Jaycee GreenePro Member
    Real Estate Consultant · St. Louis MSA · Member since 2024 · 3k+ posts · 727 votes
    2mo
    Quote from @Evan Friesen:

    Looking at getting started we don’t have enough for the initial down payment of 20%. We are in our low 30s and own a home. Our bank suggests we can take a lien out on the house we own. Or do we wait another 1.5 years to save the money ourselves. We currently have approximately 30k to put down. we are looking to start with a duplex

    We appreciate anyone recommendations and advice.  

    Hey @Evan Friesen, welcome to the BP Forum! What is your price range/down payment amount? Are you looking for turn-key properties or something along the lines of a "fixer upper"? Are you looking for properties in your local market or somewhere else?

    [email protected]
    1Reply
    • Evan Friesen
      OP
      Member since 2026 · 3 posts · 0 votes
      2mo
      Quote from @Jaycee Greene:
      Quote from @Evan Friesen:

      Looking at getting started we don’t have enough for the initial down payment of 20%. We are in our low 30s and own a home. Our bank suggests we can take a lien out on the house we own. Or do we wait another 1.5 years to save the money ourselves. We currently have approximately 30k to put down. we are looking to start with a duplex

      We appreciate anyone recommendations and advice.  

      Hey @Evan Friesen, welcome to the BP Forum! What is your price range/down payment amount? Are you looking for turn-key properties or something along the lines of a "fixer upper"? Are you looking for properties in your local market or somewhere else?


      The price we are looking  around is 200-300k , so would need about 40-50 down payment. Looking for between turn key/fixer upper. Housing in my market to start of at


      0Reply
    • Jaycee GreenePro Member
      Real Estate Consultant · St. Louis MSA · Member since 2024 · 3k+ posts · 727 votes
      2mo
      Quote from @Evan Friesen:
      Quote from @Jaycee Greene:
      Quote from @Evan Friesen:

      Looking at getting started we don’t have enough for the initial down payment of 20%. We are in our low 30s and own a home. Our bank suggests we can take a lien out on the house we own. Or do we wait another 1.5 years to save the money ourselves. We currently have approximately 30k to put down. we are looking to start with a duplex

      We appreciate anyone recommendations and advice.  

      Hey @Evan Friesen, welcome to the BP Forum! What is your price range/down payment amount? Are you looking for turn-key properties or something along the lines of a "fixer upper"? Are you looking for properties in your local market or somewhere else?


      The price we are looking  around is 200-300k , so would need about 40-50 down payment. Looking for between turn key/fixer upper. Housing in my market to start of at


       @Evan Friesen Have you found any duplexes in that price range? I did a quick search in Madison and the lowest I could find is $325k and it leaves a lot to be desired. Good luck!

      [email protected]
      0Reply
  • Caleb Brown
    Real Estate Agent · Kansas City · Member since 2018 · 4k+ posts · 3k+ votes
    2mo

    If you have equity in your home I would lean on a refi (if it makes sense). If you do tap your equity you need to run numbers with that in mind. Look at your updated payment and look at the duplex cashflow. Nothing wrong with saving more and learning. 

    1Reply
  • Jacob CamhiBusiness Member
    Hinton, WV · Member since 2026 · 132 posts · 40 votes
    2mo

    hey, that's an exciting step to take. most beginners think you need 20% down right away for an investment, but that's usually for non-owner-occupied properties. since you're looking at a duplex, you could actually 'house hack' it.

    this means you live in one side and rent out the other. with an owner-occupied loan like fha or even conventional, you can often get in with as little as 3.5% or 5% down. that $30k you have might be more than enough for that kind of loan on a duplex. i'd look into that first before taking out a lien or waiting to save.

    0Reply
  • Aaron ZimmermanBusiness Member
    Accountant · Chicago, IL · Member since 2018 · 2k+ posts · 1k+ votes
    2mo

    Can you house hack and rent out your current home? That would be the easiest path from a cash perspective

    i would also consider opening the heloc just so you have it  if you need it . 

    [email protected]
    Brick House CPAs53 Reviews
    WebsiteView Page
    0Reply
  • Nicholas L.Pro Member
    Flipper/Rehabber · Pittsburgh · Member since 2018 · 6k+ posts · 5k+ votes
    2mo

    @Evan Friesen

    you don't have enough

    keep saving

    good luck

    0Reply
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