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Tianna Marie Osbourne
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Best options for buying another property?

Posted

Hey guys, a newbie here looking for some advice. I'm 21, I've been investing in real estate for 3 years now. I was able to save a good amount of money and purchase a 3 bedroom 2 bath mobile home on an acre of land all cash, that property generates $875 a month, no mortgage or HOA fees. It's worth about 60k not including the land. My second property I just purchased in January, a 3 bedroom 1 bath condo that rents for 1,300. I paid cash, but borrowed 30k from a family member to cover some extra costs and renovation, the HOA fee is $135, and I pay my family member $500 a month until the 30k is paid off. It is worth about $145k

My question is, what is the best way to purchase another property? For reference, I am self-employed (I run my own online clothing business, i am 1099-k) and I've always been told that it'll be hard for me to get a conventional mortgage when you're self employed, so I am specifically asking about other types of loan options.  I'm used to purchasing property all cash, but I want to buy another property within the next 2 months without waiting until I have enough cash to purchase because that'll be another 1-3 years of saving. I am really trying my hardest to purchase at least 1 other property this year, ideally 2 more.

I am looking for slightly distressed properties in the 50-120K price range (yes it's possible), should I look into borrowing money against the condo? A HELOC? Hard money lender(even tho some don't lend anything under 100kl)? A DSCR loan? What do you guys suggest? And I'd love to hear lender recommendations if anyone has any.

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