Updated about 6 years ago on . Most recent reply
Getting started...when to pull the trigger
I am envisioning myself with single family rentals, a multiplex, or complex in the next five years..Here’s the thing. I’m in this mindset that I should be saving money until I “have enough”. Is this the right strategy? Or should I be financing more? Basically I’m looking to put 20% down. Yet when I had a conversation about this with my “loan guy” he said I can get in with 5% down.
I’ve listened to many of these podcasts and more and it seems like many wait until they have 20% down. Is this a fuzzy number, does it matter at all? Should I be waiting for the market to turn down to find a deal on the front end? I have so many questions and so much ambition, but not sure when the time is right and how much I should have to put down and as a back up if I plan to use a property manager.
Sorry for the ramble. Feel free to speak to any part of this lol. -Matt
Most Popular Reply
#5 All Forums Contributor
- Plymouth, MI
IF you can get it for 5% and it cash flows, then do it. Keep this in mind.
1 - As long as your property cash flows positive, the only cost to you is what comes out of your pocket...and that shoud only be the down payment.
2 - You don't start making a profit until you recover all the cash (your cost) you put in, so the smaller your cost, the faster your profit starts.