First Rental: Triplex

[Evan McNally]

First I’d like to say I am new to this. I am 25 and eager to build some passive income! I just recently made an offer on a triplex and the offer was accepted. I am closing on this the 21st. I bought the property from a guy that was cashing out his portfolio and moving away. The purchase price was 35,500. All tenants pay their own utilities. The property brings in 1300 a month. I am purchasing this with cash. I am looking for a way to expand after getting this property. I was wanting a few ideas on how to expand. I thought about trying to finance the house after I doctor it up a little bit and using that money to purchase another one. My credit isn’t the greatest 650. So I was wondering what would be a good way to go about getting more with financing. Would it be better to start a business and build that credit up or??? Thanks in advance.

[Landon Bleau]

Evan, if you have debt in collections which is causing you credit to be lower, I'd focus on using the income from the property to pay it off.  If you do this over 6 months, this will be great as your seasoning period and lenders will be able to see that you can maintain and manage the property, so you're killing two birds with one stone - bringing your credit up, and getting your seasoning period in!