Tips for Raising Capital

[Devin DiManno]

Hi Everyone,

I recently bought my first piece of property 2 years ago (3BD, 2B, 1300 SF) by putting down 10% ($60,000.00). I am looking to refi once the rates drop to bring my P&I down and hopefully eliminate the PMI I am paying. I got this property at the right time, it was on the market for $699,000.00, seller needed to sell, I offered $550,000.00 after they cut to $650,000.00 and we agreed on $600,000.00. Assuming the property is appraised at $650,000.00 I am hoping the equity will get my LVT to 75% eliminating the PMI, adding to the potential cash flow when I go to rent and then putting that cash flow + personal savings away to raise capital to buy another piece of property.

I realize that in order to buy my next piece of property I will want to put down 20% to avoid PMI and a high mortgage but saving 20% for a piece of property in my area is going to take some time due to the high price ranges $500,000-$700,000. I wanted to ask the the group if anyone has used alternate means of raising capital, strictly to buy another piece of investment property.

I am new to the group and looking forward to any dialogue. 

Thanks,