Buying 2nd investment property..

[Ryan R.]

My question is about the 20% down for obtaining my second investment property. I have the cash, but I don't believe it to be wise to put down 20% if I am purchasing a property that already has 20% equity.

My current investment property is financed through WF at around 4% as investment property. Refinanced with them without having to put down 20%, appraisal was $150k and note was a little under $120k.

I have roughly $60k in equity between my investment property and my PR. I also have about $30k in cash. The property I am looking at was appraised for $89k and I would pay no more than $70. My credit is about 740 and my current property cash flows over $350 a month.

Do I have any leverage when working with a lender? I spoke to a WF consultant last night and she said "pretty much" there was no way around the 20% down rule? She didn't sound very intelligent or willing to help so I didn't bother asking her what "pretty much" means. So that's why I'm here. What do you say?

[Steve Babiak]

Buy it on the owner finance arrangement, and then go to the bank to do a refi! Of course, see what the bank would need first to be sure that they will eventually do the refi.

As I've stated before, sometimes you have to combine creative concepts to get things to really work well.