First Buy and Hold Investment Property

[Amy Oltendorf]

So, after much thought and debate, I would like to start investing for the long term with buy and holds. Here is my situation: I currently have my duplex for 7 years now, so I have had some experience in managing that. Ups and downs of course, but overall I have enjoyed it. I am not too handy, but have learned along the way. I originally thought I wanted to buy a 4-plex or a triplex, however, after reading into things on BP, I think I may start with single family homes, as they have lower start up costs, and more exit strategies, I mean if I like it, I can always look into adding more to my plate, right? I will be looking into investing close to me, on the lower end of town (single families are going for 25-40K). I already spoke to a handful of banks and asked the question to my local REIA about financing the first deal. I do not think I will have a problem receiving bank financing, (since I spoke to one specifically about my situation) since I have a stable, decent paying job, (for 10 years) excellent credit, (little over 800) liquid reserves, a 20-25% down payment, 2K on a credit card, (which I could pay off, but have a deal with no interest, so why bother) and a decent amount in my 401K and Roth IRA (as the banks informed me I can use up to 60 % of that value for 6/12 months of reserves ). Since I am looking in the lower end, and the prices are not drastic, is it smart to receive bank financing for such a small loan, probably 20-30K? I have also heard people talk about "portfolio lenders" and maybe looking into something like that. I hear though, if you are able to receive bank financing, do it, since the payments are so low (but how will this affect things in the future, when I plan to buy another one down the road). Does anyone have any thoughts or suggestions on this, as I am reading and reading, and tired of not doing, as I am ready to call my bank to start up the paperwork this week. Thanks in advance for any suggestions. This site has been so helpful to me already, since I have already searched the forums and all with these topics! That is why I am stuck, every time I think I know what to do, someone else speaks up to give me more thoughts on something else! Which is awesome!