Newbie with primary residence but want first investment property

[Brya Freeland]

BiggerPockets Community - I have a situation I need some advice on.

So I currently own a condo which I purchased with conventional financing and I am looking to purchase my first investment property in the Washington, DC area.

Since I am focusing on the Buy and Hold method, I thought utilizing the BRRRR method would be my best option which would have me focusing on cash purchases. However, even though I have some savings put aside, I don't know if I would have enough to buy homes in the SouthEast DC area all cash.

Can anyone recommend additional financing options outside of conventional that could help in purchasing properties without putting 20% - 25% down upfront in order to save money for rehab costs?

Thank you

- Brya

[Nicole A.]

@Brya Freeland I understand that Russell's advice might not be what you want to hear, but it is good and knowledgable advice...and from someone in the area too. 

BRRR deals typically require that you buy a fixer-upper with cash and then renovate it with even more cash. Some people can get hard-money help, but remember it has high interest rates and tough terms...and you would still need a large chunk of the your own cash. So expect needing more than 20-25% down...expect close to 100%.

While I'm sure it's not *impossible* to find deals in DC, the price-point--even for fixer-uppers--doesn't typically lend itself to cash-flowing rental properties. It will be tough to find.