Creative of Conventional in Rochester, NY?

[Shane W. Chapin]

Good Morning BP! I am currently under contract on my first SFR and have a question on the financing. I just finished @Brandon Turner book on real estate investing with low and no money down and love the creativity he has used. However, I find myself in a position to get a 30 year conventional loan w/ 20% down. I will also be paying for the rehab out of pocket. This is going to take most of my capital which will make acquiring my next deal difficult (not impossible). Should I be exploring alternative financing in order to use less cash up front or take advantage of the low fixed rate and just figure out my next deal when it comes?

[Jon Maroni]

Hi @Shane W. Chapin congrats on getting close to closing your first deal in Rochester, and welcome to the market there. My wife and I have 4 SFR in the city and we've done conventional financing for each of them. For us the speed of acquiring properties hasn't been as major of a concern as some in the BP community so we've done our purchases with conventional financing. Our rate of acquisition has been 1-2 per calendar year. My main question would be how quickly are you able to save the money for your next deal out of your other income sources i.e. your pay or side hustles? For instance, how long would it take you to buy your next deal if you didn't seek creative financing?