Financing Rental Property

[Nick Lawler]

Hello fellow pocketers! I am looking to invest out of state in my hometown of Columbus, OH and have found a fourplex that meets my criteria for location, unit size, property features, etc. However, I am trying to figure out how to make the financing for the property work without spending every last dime of my bank account as I already own a home which I use as a house hack and could use reserve cash for unexpected problems. Any helpful experiences or guidance on how to make the investment work would be awesome and appreciated!

[Remington Lyman]

Originally posted by @Nick Lawler:

Hello fellow pocketers! I am looking to invest out of state in my hometown of Columbus, OH and have found a fourplex that meets my criteria for location, unit size, property features, etc. However, I am trying to figure out how to make the financing for the property work without spending every last dime of my bank account as I already own a home which I use as a house hack and could use reserve cash for unexpected problems. Any helpful experiences or guidance on how to make the investment work would be awesome and appreciated!

Move to Columbus, Ohio, and house hack it or get a 25% LTV investment loan. This will require you to have 6 months of reserves for this new property and 6 months in reserves for your old property.

That is my guess but your best bet is talking with a few local lenders. Maybe commercial lenders, but they are going to want to see cash-flow from the asset with a combination of liquidity from the borrower.

Rich family members also help.

Maybe partnering with a high net worth buddy?