New investor creative financing

[Lisa R.]

Is anyone investing in high value markets who is willing to share strategies on how they are funding real estate?  Or how they would coach a new investor (me - I'm the new investor) on funding smartly?

Looking to purchase our first SFH/condo, LTR property in Northern Colorado, in the range of $260k, we have cash for 20% down. Our primary residence has a lot of equity, we have great W2 incomes, and >800 credit scores. Looking at HELOCs for either a larger down payment combined with a conventional 30yr, or using the HELOC for the entire loan. Not looking to move to do big rehabs.

I'm using the BP calculator and getting cash flows of -$800 to -$1000.  I just want to break even.  I would really love to hear how others are being successful. 

TIA

[Dan Guenther]

@Lisa R. - Welcome to the BP community! I see were both in the Noco regions, you should definitely swing down to Longmont for one of my monthly meetups ;)

Based on your criteria, you are in a great place to make your first investment. Is there a specific reason why your are aiming for the $260K range? Assuming you have about $52,000 for a down payment, you could potentially increase your purchase power using a 10% down investment loan product. I work closely with a few lenders who I've done 10% on strictly investment properties. 

Another option is creative finance, either subject to or selling financing. If you haven't heard of these strategies, I'd suggest browsing the forums here and spending some time on YouTube. Last week I closed on a seller finance deal in Longmont CO. This was a half duplex property and we were able to put 20% down with a 4.5% interest rate on a $480,000 property. Our monthly payment is around $1800/month with rents around $2400/month. This same deal funded through traditional lending would bring your monthly payment up to about $3200/month. Creative finance is powerful but the deals are not as easy to come by! 

Let me know if you want to talk more! I'd be happy to connect you with other investor friends up North.