Creative Finance Question

[Jeremy Pommerening]

Hi,

I'm looking at a property on an Island to use for Airbnb & VRBO.  The home is currently used for this and making great numbers.  Based on the actual numbers given my profit margin should be around 40-45% of gross rental revenue.  My issue - like most people is down payment.  I spent $100k down on my last rental investment two years ago and that left me short on cash.  While the rental is doing great it doesn't afford me a ton of cash.  However the rental property has a good amount of equity.  Should I leverage as much equity as possible to try and purchase the next property?  Would it be better to find a private money lender that will do the deal?  I could also contact the sellers to see if they will finance for 2-3 years before getting a loan when interest rates come down (surely they'll come down).  I just think from what I've seen everyone is going to want 20-25% down and if I had that in my pocket I would have already walked in to a bank to get a loan.  I'm looking for a way in to this deal without a huge down payment.  I've heard some private lenders will buy the property at 100% and sell it to you.  Is that true?  Thanks in advance for reading.  

Thanks,

Jeremy

[Ryan Mitchell]

Quote from @Dave Skow:

@Jeremy Pommerening thanks 1) if property is a SFR - a 15% down payment might be possible 2) I wouldnt make any decsions based on the hope rates dropping ...they likely will but you cant count on this occuring and then be caught in a hard spot 3) 100% financing on an investment proeprty not possible - good luck

I wouldn't necessarily say that finding 100% financing is impossible, though it's very unlikely. I've seen people have more success with 100% financing on seller financed deals, but the other half of this is having a great relationship with a private lender that will accept 2nd position. And the deal must be good :)