1st MF Purchase Financing Strategy Question

[Chris Strasser]

Hi Everyone,

I'm selling a investment condo in Oakland and looking to purchase out-of-state. I'll 1031 the property (owned F&C) but looking to see what others have done in terms of financing and how much to purchase. My overall goals are to cash flow as much as possible in the short term (2ish years) for personal reasons, keep the property and expand the portfolio greatly in the longterm.

My first thought was to buy 1 commercial property all cash with maybe a small loan/HELOC to cover the difference between the cost and 1031 min. and get my commercial feet wet. Now I'm thinking maybe I should purchase with 60-70% cash and purchase a bigger property or potentially 2 properties. I have a primary with mortgage and a getting a HELOC on the primary as we speak.

Again, I'd love to hear the communities thoughts and what others have done. If you have questions, by all means ask away. 

Thanks,

Chris

[Joseph Gozlan]

@Chris Strasser you could try leveraging and getting a bigger property. If it's big enough to to qualify for agency debt you could try and get a loan that has 1-3 years interest only at the beginning which will increase your cashflow in the next couple of years.