Financing my first deal

[Adam Ferro]

I believe I have read every article on BP about financing but I'd like to know your guys strategy on how you financed your first investment property deal. I have little money down and looking at around $300,000 price tag in Denver for what I am looking for. Whether it be creative ways of how you made it work or just great stories, I'm curious what you all have to say.

[Alexander Zurn]

@Adam Ferro I financed my first property with a First Time Homebuyer program the state of Rhode Island, which has similar home prices to most of CO (my 1st was $270k), offers. RI Housing offers a Downpayment Assistance and Closing Cost assistance program - allowing me to finance the DP & CC. These programs are subject to different states, I am not sure if CO offers one.

There are pro's & con's to this and, as you've seen, are entirely subjective to you, the investor. I elected for it considering I wanted to use my savings on renovations to get the property up to speed with 2018 & the potential rents I saw would cover the 1st mortgage and DPA/CCA mortgages. Yes, I now owe 101% CLTV still (after 8 months of payments) but my strategy for long term buy & hold is working as the rents are far and away covering the mortgage - most of the cash flow is going to cap ex, repairs, vacancy etc. - but it is allowing me to save for my next one.

Important items to consider: your investing strategy, how you plan to finance your next property, & your exit strategy.