2025: How to tap into OPM

[Arun Philip]

Hi, I have a current SFH rental. Cash Flow is not the best but have appreciation on the property. My goal for next year is scale and acquire at least 5 more properties (preferably multifamily). End goal is get into the commercial housing and industrial. I don't have much cash to put down for a property and don't have anyone to rely on to borrow capital. Wondering what are the different ways everyone got the money to put down on a property and the way to finance it? Ideally looking to cash flow positive on all properties.

[Nicholas L.]

@Arun Philip

not sure if i understand your question.

if you don't have any cash, period, you shouldn't be buying any more properties.  if you have some cash, but not enough cash for huge down payments, OK, welcome to real estate investing.

i am trying to BRRRR right now. you can use hard money to buy a BRRRR - will still require a down payment - and then refinance.  but BRRRR is not a cash flow strategy and you likely will not cash flow after the refinance.

if you want 100%, no strings attached financing... that's going to have to be a family member or something like that.  and it's still probably not a good idea.

hope this helps

[Mike Grudzien]

Try networking locally with real estate groups, investor groups, rental owner associations, a local REI, etc. You need to connect with people, form trust relationships, learn from others in your area and you'll be surprised how opportunities open up. But yo have to pay your dues first by connecting, attending and networking.
My 2 cents,
Mike

[Chris Seveney]

Quote from @Arun Philip:

Hi, I have a current SFH rental. Cash Flow is not the best but have appreciation on the property. My goal for next year is scale and acquire at least 5 more properties (preferably multifamily). End goal is get into the commercial housing and industrial. I don't have much cash to put down for a property and don't have anyone to rely on to borrow capital. Wondering what are the different ways everyone got the money to put down on a property and the way to finance it? Ideally looking to cash flow positive on all properties.

 So lets start with you want to finance properites but looking for them to cashflow. The reality is this will not happen. If you do not have your own cash, you are borrowing money from someoneone some how whether its a loan or equity. Leveraging a property in todays environment of high interest rates will not get you cash flowing. 

So trying to acquire five more properties without cash and have them cash flowing is going to be a huge hurdle. Getting one property and cashflowing it will be a challenge. 

you can try seller financing but you are still going to be highly levered which just enhances the risk that you are taking on.

The best way to grow is to focus on managing your rental, saving money through your W2 and crushing that - if you are a realtor you will make more crushing it as being a realtor than over leveraging real estate - then save for down payment and buy slowly. its not a rush.