Buy and Hold Questions from a New Investor

[Dominic D.]

Hello everyone,

   I’m a 22 year old Floridian, stationed in the Midwest and I have just over $26,000 saved with a 731 FICO. 

    My strategy is to buy and hold affordable properties while I am still living in the Midwest over the next couple of years. The property is very affordable in comparison to back home and I want to use this to my advantage.

     I have recently analyzed a fourplex in a nearby city priced at $125,000 (I believe I can negotiate it down to the $95,000-$100,000 range). This is a B- property with a new roof and has a combined market rent of $2,680.   I would like input as to what others would do in my situation.

     My questions:

Is it more advantageous to utilize a smaller more local lender as a way to build a reputation as a new investor?

Would it behoove me to put down a larger down payment for more cash flow, or, should I use some of my cash to invest another 5% into another property?

Thank you for your input,

    Dominic

[Joe Villeneuve]

What are the rest of the numbers?  The ones with $$$ in front?  Rent means nothing without knowing the exact monthly costs...and never put down a larger down payment to get what you think is bigger cash flow.  All you're doing is buying cash flow.  That makes now sense.  Use the least amount of Cash as you can...as long as it still cash flow positive, at the minimum required cash flow for you.