All Forum Posts by: Christopher Norris
Christopher Norris has started 1 posts and replied 2 times.
Post: How do you come up with the down payment for rental properties?
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@Jason Philip thank you for your reply. If I do a cash out refinance and assuming I get a loan rate of 7.5% that would put my monthly payment up to $1800. Now that would give me $100k and might be able to buy two properties. Am I looking at this correctly?
Post: How do you come up with the down payment for rental properties?
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So I am looking for some advice. We are trying to purchase rental properties to pay for my children's private education. We estimate that we need roughly 9 more properties that generate $300 / month in cash flow to meet this goal.
Currently, we are a single-income household. Our current income sources are:
- W2 Job
- Freelance
- Single Family Home Rental (just one)
We have been renting out our single-family home for about 2 years, generating $300 / month in cash flow.
The problem I am having is that I am finding it very difficult to come up with a downpayment of 20% to purchase new properties. Properties in my area are going for $250k +. Even with my income, most of my money goes to taxes. I also learned that a down payment on a rental property does not count as an expense.
How do you go about raising the capital to purchase new rental properties?
Thank you for reading this and helping me achieve my kids' goals.