Saving for first property

[Shannon Nacpil]

I'm contemplating ways to raise the funds for my first rental property. I'm super green right now, and still in the information gathering stage. While my husband and I both have decent middle class incomes, with 2 kids and a house, there isn't a tremendous amount left to save, and it feels like a big mountain to climb. I was just notified that both my husband and I will not be receiving any match this year to our 403B's due to COVID19. For this reason I was considering reducing our contributions down to the bare minimum this year, and putting the money I would normally contribute aside for a rental investment. Does this sound like a logical plan, or is this unwise??? Additionally, would anyone mind sharing how much they saved (and any strategies for doing so) for their first investment rental (downpayment and upfront costs as well as how much they set aside for cash buffer). We will be doing this remotely and looking in areas where we can hopefully find more affordable homes. 

[Chris Risi]

Hey @Shannon Nacpil, I think Dan's advice is good with the HELOC (home equity line of credit). I partnered with someone once who was able to use his HELOC to buy the property for us. While I don't know a ton about HELOCs it's worth looking into!

Also, I think if you get good at learning how to evaluate deals (learn how to use the Bigger Pockets Investment Calculators), you can actually start to print and present these reports to potential friends or family who might have money to invest. Also, I think there are investors you can start to communicate with and potentially invest with on Bigger Pockets. Good luck!!