Just got my first multi family property! Now….?

Just got my first multi family property! Now….?

Member since 2025 · 1 post · 1 vote

Hi, I just got an accepted offer on my first property (4plex) in Anderson, IN. Going in, I have a HELOC that I can draw about 60k from my primary and then 25k in cash. This first property will require about 35k of that 85k.

My question is, what is best way to scale and continue buying properties without depleting all of my money?  Can someone easily explain best way to leverage my new property, etc to be able to get a 2nd, 3rd, etc by only using my properties as collateral?  Meaning, is there a way, maybe even after my 2nd purchase, to only use my properties to continue to scale?  I am only doing turnkey properties so there won’t be much equity other than initial downpayment.   I am just curious how people scale when they don’t have a lot of liquid cash like me?  Would love to know more!  I want to get, at least, 5 properties over the next 2-3 years if possible.  Thanks! 

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  • Alecia LovelessPro Member
    Member since 2019 · 3k+ posts · 2k+ votes
    1y

    @Paul Whitehurst Without equity or cash it is very hard to scale. You will likely need to save up for your next down payment. Those that preach no/low down payments are mostly just trying to appeal to the masses who want everything for nothing that will buy their courses.

    Keep your W-2 job, save, and you’ll be able to afford your next down payment.

  • Nathan GesnerBusiness Member
    Moderator
    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    1y
    Quote from @Paul Whitehurst:

    Many will tell you to borrow money from Property A to purchase Property B, but that's known as over-leveraging and not recommended for a newer investor. The money borrowed from your equity comes with interest, then you have the new mortgage with interest. Do the math and you'll see it doesn't make sense.

    The best way to invest: increase earnings, reduce expenses, and save.

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