How to best finance the next move?

[Jonathan Dempsey]

Hello BP community, Any help or advice on how to proceed next on my real estate journey would be much appreciated. I currently own one property with just over 3% equity. I would like to keep moving (albeit at a comfortable as opposed to hasty pace) and create a plan on how to finance the next property. Do I have to wait until I have 20% equity in this property to be eligible for another bank loan? And if so will that loan require 20% down or will I be able to highly leverage the next property? What are some other routes I could take? Perhaps seller financing? How would I find these types of deals and what are the pros and cons here? I live well below my means and have decent cashflow from my first property, so additional debt does not scare me as I can pile up reserves & work extra hours if needed to scrape up any extra cash needed. Thanks in advance for your help, JD

[Harjeet Bhatti]

@Jonathan Dempsey  You don't have wait for 20% equity in your current home.  If the next property is investment property you do need 15% down payment for 1 unit and 25% down payment for 2-4 units.  If you want to get finances through conventional lending you do need reserves and 15%-25% down payment.