Buy first property in such a way that buying second one is easy

[Sethu Nagappan]

Hi,

I am going to buy my first property in GTA!! My ultimate goal is to be a rental property investor. So, I want to position myself while buying first property in such a way that I can buy the second one as quickly (not more than 2 years of buying first property) and easily as possible and also want to leverage my first property for buying the second one. 

My idea is to dwell and rent a part / basement of the property which I am going to buy first. I have the following questions,

1. What kind of properties should I be buying now in order to get equity of it quickly for my second property?

2. Is there a particular approach which I should take for mortgage ?

3. For example, if my first property is a detached house worth $750k. And if I wish to buy a condo as my second property for renting at $450k, then how can I have the downpayment for this condo within 2 years at most ?

[Brian Ellis]

1. Value add property. Get some sweat equity in that first one!

2. If you can afford the down payment, go with a conventional mortgage so you can buy a distressed home.

3. Take the equity you gained from the first property, and use it to purchase the second one.

Good luck!