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Updated over 8 years ago,
New Investor- 1st deal under contract but how to finance the next
Yay! Many offers and months of studying later our first buy & hold property is under contract! It is a duplex, each unit 1 bed/1 bath in South Jersey (Salem County). We are buying the property for $79,900 with a commercial mortgage (20% down). It is currently tenant occupied and being rented for a total of $1,475/ month. The property could use some minor repairs, but through our repairs request we negotiated and came to an agreement that the buyer is going to provide us with a $3,500 credit towards our repairs-which we were very excited about. The duplex will cashflow roughly $600/ month and we are excited to keep things rolling and find another.
This leads me to my question......how do we finance the next? We have our eyes on a duplex in town that is vacant, not for sale and the owner is staying current with her tax payments. We are in the process of tracking her down and hopefully getting inside the property/making an offer, but at that point we are unsure of how we are going to finance this one. We wouldn't be able to afford the out of pocket expenses for another conventional mortgage right away and we have tried previously to get a HELOC on our primary residence, but my income alone does not qualify us for one and my fiance's paychecks are not on the books at this time. With recent changes in her job and possibly even mine, we are hoping that in the next 6-12 months we will be able to qualify for one, but are there any options that we are missing that we could utilize in the mean time?
Any input would be greatly appreciated! Thanks!