Purchase SFH cash or use a partnership?

[Max Malec]

Hello all, 

I am a longtime reader and fairly new to action in the DFW market. I was recently downsized out of my job while in the midst of looking for a deal in the DFW market. I am looking to build a portfolio of single and multifamily homes surrounding Dallas but with the unfortunate timing of being let go before doing my first deal, I will have trouble getting a traditional bank loan. 

I have enough cash to buy a deal in the ~$200,000 range (as well as a small amount of regular dividend income) but would prefer not to use all my capital on one deal. If I were to do this, I would want to rehab then put a mortgage on the property after a seasoning period (essentially the BRRR strategy) but, even if I force appreciation and it cashflows, I am still worried about finding a traditional lender.

I thought I might use a partner to co-sign a traditional mortgage with 20%-25% down and that way I could do several deals with conventional financing using my saved capital. What might banks think about offering an investment loan to two partners, one with decent steady income who just signs the mortgage and one who supplies the down payment? 

Any help and ideas are greatly appreciated!

[Caleb Heimsoth]

Max Malec I would focus on finding another job first before doing anything real estate related.

After you do that I would fund your first deal with 20-25 percent down conventional.

I’m not a huge fan of all this “creative” financing stuff. Why do you need a partner for your first deal? You’ve got the money, you’re on BP so clearly you can learn or want to learn.

Also I’d consider going out of state. Living in DFW prior myself I can tell you those taxes are gonna eat your cash flow for breakfast. One state above you in ARkansas is much much lower. Your 200k could buy you 3-5 rentals in a market like that, likely in cash for all of them..