I'm looking to buy a second rental property

[Loubert Antoine]

Hello BP

I recently purpased a dupex in Bridgeport, CT with 10% down conventional loan on December 13th last year.  I rented the 2nd and 3rd flood combo units to a section 8 tenant while I live in the first floor with my girlfriend (house hacking). So far I'm living for free and still cash flowing around $200 a month.  I have a Job making 60k a year and 750 credit score.  I'm looking to buy another multi family withing this year.  I have chase bank and it requires me to stay in my current house for a least one year before I can move out.  I also have 75k in my 401k if needs be.  I did take 10k from my 401k for my first purchase so taking more money from it would be a bigger penalty.   Any ideas BP family?

Thank you

[Zachary H.]

I obviously don't know your full story. Someone with experience with Self Directed retirement accounts might have an idea of what to do with that 401k (obviously depends on price range you are looking for. MFH will likely not be able to be purchased for $65k in a lot of markets). 

My go to answer is to live for less and keep on saving up. If you can cut your expenses down on personal life and save up for a larger 10-20% down payment, it will make things easier. Shouldn't be hard since you have no house payments. 

However, if you like to go out and enjoy life a little more and don't want to cut down on expenses, you can always try joint venturing with someone else that has cash if you know how to put deals together. 

The great thing about this business is the amount of different paths you can take.

Good luck to you sir!