Buying Your Second Rental Home

[Jamila Thompson]

Hello everyone,

I am 22 years old, just graduated from college and I am currently a civil engineer in NYC. On the side, I have my own business that generated $35K so far this year. I have a credit score in the mid 700s.

Long story short, I am very interested in investing in a rental property in the Bronx. I have a little over $10,000 saved for this investment. I want to grow as a multi-family (buy and hold) investor. As a result, I’m thinking ahead and I’m a little curious as to how I can finance my second rental property.

I listen to many podcasts and hear experiences of how investors just starting out, accumulate properties at a very fast paste with little money down. In my case, I am worried that I won’t have money left to invest in a second home after I purchase my first investment property. I’m also worried that my credit score might decrease and I might have a harder time getting approved for a loan on the second property.

Has anyone had this fear and how did you overcome it? Also, I would love to hear any advice or your experiences on purchasing your second investment property utilizing the money you earned from your first rental.

Thank you.