SFH Investment

[Logan Hale]

Hey guys. I am in the Des Moines, IA area. I am currently in the process of getting my real estate license and once complete, I am going into the commercial side. However, I thought I would start investing in the residential side. I am currently working with another agent to find something under 100k that will cash flow 200-300$ per month. Me and my wife will be putting up to 20k down on a property to avoid the mortgage insurance requirement.

I have two questions regarding this:

1. If we purchase a 100k property with 20k down, can we get a second mortgage on the first property to use as down payment on a second investment home (and correct me if I am wrong, but with a second mortgage we don't need mortgage insurance)? And would you recommend this?

2. How many of you have done a balloon mortgage on an investment property to increase cash flow and would you recommend doing this? Or do many lending institutions even loan for this type of mortgage?

Thanks for the info.