BRRRR w/ Financing Options

[Chris R.]

Hello all, I'm new to investing and have been looking for my first deal for the last 3-4 months however haven't found the right one. I'm looking in the Boston and surrounding areas, which is extremely competitive, expensive and challenging to find a multi that will cashflow out of the gates as is. For most places I'm looking at I'll need to do light rehab (paint/floors) or more extensive; adding bed-rooms to stabilize the property to see the returns I'm looking for. But this can get expensive. 

I'll need to finance the purchase and having trouble finding less than 20-25% down (not owner occupied), eats up capital. I'd rehab the property with what I have left over, increasing value. However I'm not connecting the dots on how I can get cash out of the property once the rehab is complete in this scenario. A refi, I'd have to leave more in to keep the 20-25% down? What am I missing? Or is eating the rehab costs my best option here?

Any thoughts / ideas on a strategy? Thanks!

[Brad Jacobson]

Hey @Chris Renzi,

One quick and easy option that might be out there is to find a local lender that might have a less expensive loan program.  

Most typical loans do require the 25% down but here in Utah I found a local lender that will do a 15% down with no PMI on any 2-4 unit and did a loan with them in November. Just last month I found another local lender that will do a 10% down investment loan for any property in-between 1-4 units.

Network and see if you can find something less cash intensive!

Good luck,