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Updated over 6 years ago on . Most recent reply
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How to purchase my first (or several) rentals
Hey, Biggerpockets people! I haven't been on bigger pockets for long, but I'm really excited about what real estate can do!
Here's my question - I have a private money lender who is willing to provide $40,000 at 8% over 20 years(or shorter). Would it make more sense to purchase one property like a cash deal, purchase multiple properties with the private money as the down payments using the BRRRR method, or purchase a property using all of the private money as a down payment(then probably BRRRR with it)?
It seems that having to pay interest on the down payment is a bad idea, but if the increased cash flow allows for it, maybe it could work? I'm not sure, but you guys probably do!
Thanks for the input!
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- Residential Real Estate Investor
- Kansas City, MO
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Of course it really depends, but I think the BRRRR method is the best way to go about acquiring a rental portfolio, especially if you have a private money lender.