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Updated over 7 years ago on . Most recent reply

Pay for full property or only down payment when wanting multiple?
So my name is Jared (I'm 25) and I've been wanting to invest in real estate and I feel like the area I want to invest in is perfect for making money for my needs. I lived in the town that I want to invest in and I really know the market and where to buy. The town is a college town and they always need rentals. The Nice thing is that this is not a party school and people go to school to go to school which is nice when wanting to invest in rentals. These are my questions....... I can pick up a pretty much turn key house for about 50-60k. Maybe needing paint and simple stuff like that. I personally have 13,000 saved for me to start this and I have a family investor that would be willing to almost get me the rest. These houses rent for right around 700-800. Would it be smarter to Pay say 45k and finance the rest and only have super low payments and use the equity into another house? or put a lot less down? This is basically what I'm trying to figure out in order to start this process. I'd like to get 4 rentals in one year once I start and to a lender after the first, would having almost the whole thing paid off and show it bringing me a positive of like 500-600 a month or saving some of the money two have a 2nd down payment.
Option 1
House Price 50,000
Down payment 40,000
Payment 100ish
Property income 750
(in the positive 650)
Option 2
House price 50,000
Down payment 10,000
payment 400ish
Property income 750
(In the positive 350)
Which one would a lender like to see in order to get a 2nd home, then 3rd so on and so on.
Thanks, Jared
Most Popular Reply

I would do a full analysis on a few properties and look at your cash on cash return. There are a few more expenses than just the mortgage payment.
The calculators on BP are great.
- Jordan Moorhead
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