What can I afford with $35k?

[Benj Ecker]

I'm looking for my first deal. Conventional lender who pre-approved me is a REI himself said 25% down payment on an investment property is standard. And they won't do a loan under $75k (since closing costs would be over 5%). So that puts me at $100k minimum purchase right there for a conventional loan.

Let’s say I have $35k I could invest. With the math above that puts me at a ceiling of $120k ($30k down payment plus closing costs).

Is that right? Would I really be stuck with a window of $100-120k?

[Jim Kittridge]

Your understanding is correct if that’s the route you want to go. Find one that you can buy under market or add value to so you can refinance and get cash out later.