Where do you come up with the down payments, rehab, closing costs for new investments?

[Jeff Solberg]

My wife and I just bought our first rental and we are very excited!

Now we both have good jobs that pay well. Our goal is to test the investment waters and if we like it, purchase more homes to help with retirement income years and years away. We have been pretty conservative ensuring not to over extend ourselves and that we could pay the expenses on the house even if it sat there vacant forever, hopefully this will not happen…At some point we will make a decision if rentals are for us or not. If we decide to stay with it I don’t think we could be as conservative with the next house plus saving up for the next round of upfront costs will take some time.

To my questions:

Where do you come up with the down payments, rehab, closing costs for new investments?

From what I understand down payment is normally 20% of the purchase price. HomePath is the only option I know of requiring < 20%. On top of that you need rehab money and closing costs. A 50k property adds up to be: 10k down payment + 1.5k (3% cc) + ~5k (obviously variable) = $16.5k for each property

Do you all simply have cash reserves just waiting to be used?
Do you pull cash out of other properties?
Partners?

Thanks in advance!