Skip to content
×
Pro Members Get
Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
ANNUAL Save 54%
$32.50 /mo
$390 billed annualy
MONTHLY
$69 /mo
billed monthly
7 day free trial. Cancel anytime
×
Take Your Forum Experience
to the Next Level
Create a free account and join over 3 million investors sharing
their journeys and helping each other succeed.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
Already a member?  Login here
Starting Out
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated over 2 years ago on . Most recent reply

User Stats

6
Posts
1
Votes
Henry Van Eijk
  • Raleigh-Durham, NC
1
Votes |
6
Posts

How to afford down payments on investment properties

Henry Van Eijk
  • Raleigh-Durham, NC
Posted

Hi,

I am new here and learning but my question is how do people typically come up with a down payment. If you need 20% down for an investment property, that can be a lot of money. Do people typically use equity (HELOC) from other homes they own if the value has gone up a lot. What percent increase would a home have to go up in value for someone to do this? Or how much equity would someone have to have in a home to do this? That seems like it can be risky but is this common? If people decide to save for a down payment, do they keep money in a savings account or do people typically invest that money. If you need a 100k down payment on a 500k house, and it takes you multiple years to save up for that and you put your money in a savings account, your money will not grow (think of inflation) so would it technically be better to invest it in stocks or bonds in a non retirement account (something that you can liquidate very easily). It baffles me that some people are able to buy so many investment properties if you need around 20-25% for every down payment on every house. How do people acquire so many homes so quickly? Thank you.

Most Popular Reply

User Stats

1,475
Posts
1,413
Votes
Todd Rasmussen
  • Rental Property Investor
  • Clarksville, TN
1,413
Votes |
1,475
Posts
Todd Rasmussen
  • Rental Property Investor
  • Clarksville, TN
Replied

@Henry Van Eijk

We saved for down payments for our first two investment properties. Sold one and bought one then sat down and realized that saving for down payments takes forever, we took a HELOC on our primary and bought houses needing a lot of work at a discount. Recycled that money through them with financing and bought our last 18 in the same amount of time it took us to buy our first three. Debt is impatience expressed financially.

Loading replies...