Save up or seek creative financing?

[Nicholas Hindes]

Hey everyone. I am new to RE investing but SO excited to jump in with our first rental. Could use some feedback regarding what next steps to take. Right now we are about 4 months out from finishing some student loan payments. Then we’ll have an extra 1300 a month in cash flow to save and invest. We have about 10k in the bank right now as an emergency fund. The RE bug has bitten me pretty hard and I’ve been tempted to try and look for a way to make a local deal happen. It’s keeping me up at night honestly because I’m so excited. But that would require us to really dip into the 10k we have just as an emergency fund. I need some seasoned investor advice to help me navigate the excitement of our new venture. I’m thinking it would NOT be wise/even possible of us to somehow go into our first deal with very little backup cash if something went wrong right? Like if somehow we could manage this deal we’d have like less than 1000 in the bank at closing but the multi family which is already full with two of three tenants would be netting over 1000 a month and then on top of that with our w-2 jobs we can save another 1300 a month. So on closing we go down to almost zero but by the end of month 1 we have over 2k. Perhaps I’m just an optimist too much and am not thinking about things that could go wrong but I’m sure things could go wrong with the first property and this would NOT be wise. Does all this make sense?

Here’s the plan which I think is wiser but I don’t like as much because it requires patience.

Keep sitting on 10k reserve

Pay off final 6000 in student loans by august (this btw has zero interest rate until 9/30/21)

Starting in September 21 Save 1300 a month for first investment for 15 months.

Buy first multifamily property by the end of 2022 with about 20,000 to drop on the first down payment and closing costs and then 10k in reserve and extra monthly cash flow NOT from the property of 1300.

What do you guys think it best?

Option 1 sounds exciting and ambitious but slightly impossible and risky and emotional. But option 2 sounds wiser but much more responsible but also man I want to move faster.

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Hey everyone. I am new to RE investing but SO excited to jump in with our first rental. Could use some feedback regarding what next steps to take. Right now we are about 4 months out from finishing some student loan payments. Then we’ll have an extra 1300 a month in cash flow to save and invest. We have about 10k in the bank right now as an emergency fund. The RE bug has bitten me pretty hard and I’ve been tempted to try and look for a way to make a local deal happen. It’s keeping me up at night honestly because I’m so excited. But that would require us to really dip into the 10k we have just as an emergency fund. I need some seasoned investor advice to help me navigate the excitement of our new venture. I’m thinking it would NOT be wise/even possible of us to somehow go into our first deal with very little backup cash if something went wrong right? Like if somehow we could manage this deal we’d have like less than 1000 in the bank at closing but the multi family which is already full with two of three tenants would be netting over 1000 a month and then on top of that with our w-2 jobs we can save another 1300 a month. So on closing we go down to almost zero but by the end of month 1 we have over 2k. Perhaps I’m just an optimist too much and am not thinking about things that could go wrong but I’m sure things could go wrong with the first property and this would NOT be wise. Does all this make sense?

Here’s the plan which I think is wiser but I don’t like as much because it requires patience.

Keep sitting on 10k reserve

Pay off final 6000 in student loans by august (this btw has zero interest rate until 9/30/21)

Starting in September 21 Save 1300 a month for first investment for 15 months.

Buy first multifamily property by the end of 2022 with about 20,000 to drop on the first down payment and closing costs and then 10k in reserve and extra monthly cash flow NOT from the property of 1300.

What do you guys think it best?

Option 1 sounds exciting and ambitious but slightly impossible and risky and emotional. But option 2 sounds wiser but much more responsible but also man I want to move faster.