Alternative Downpayment Funding Strategies

[Tim Jaley]

Hi All,

I currently have a couple SFH rentals that I used a HELOC (against primary residence) for downpayment and rehab. They needed light rehab, and the purchase price reflected that in the sense that they were close to the ARV. Despite this, these cash flow nicely in this area. Lately, I have seen houses for sale that need little to no work. I know from experience that these properties will cash flow very handsomely. However, I have been forced to pass on 4 or 5 of them because I do not personally posses the cash for downpayment. I have a few HMLs I've been communicating with that are ready to fund, but I still need to produce about 20% - 25% of PP for downpayment. I am hoping that people who have been in a similar situation may be able to chime in here: What are some of the non-traditional or creative, thinking-outside-the-box ways you have funded the downpayment (or structured deals like this) to allow for absolute scalability?

TIA!