Ways Around Conventional Loans For a Young Investor

[Jason Reynolds]

Hey Everyone,

Since this is my first time starting a discussion I guess I should introduce myself. My name is Jason Reynolds and I'm from Sicklerville, NJ. I'm 21 years old & I've spent the last few months learning as much as possible about real estate & would love to connect with other investors in the NJ area! 

Now, to the title of this post. Without going into too much detail, my current job has put me in a somewhat unique situation of having a enough capital to begin investing with from a signing bonus, but not having a stable or high enough income with which I think I could qualify for conventional loans. Since this may be a temporary situation, I had been telling myself to just hold off on my first rental property until I had a more stable job. However, instead of just saying I can't make a deal happen right now, I am trying to instead ask myself how can I make this work (inspiration drawn from David greene on the BP podcast). I recently found a 4-unit property at a listed price of 150,000 and total monthly rent of about 3k. After accounting for all expenses would cash flow about $450/door per month (1800 total). Because this has the potential to be such a great deal, I've been trying to find potential ways I could finance it. Here are a few options I think I may have:

1. Partner with someone who has a good line of credit we could use for a conventional loan (the only option I would have on this at the moment would be my dad... I'm sure this one would be met with criticism by most here)

2. Ask if the seller would be willing to do seller financing on a down deposit of 20-30%. 

3. Try to apply for a commercial loan. I know most commercial lenders only look at larger unit buildings, but I'm thinking with such high rents compared to the asking price there may be a lender out there willing to finance this deal.

Would really appreciate any feedback or maybe experiences anybody has on going down the route of any options I've listed, and also if anybody has any ideas which I haven't been able to think of I'd love to hear it.

Thanks!

Jason