which strategy to use to fund my first investment property?

[Account Closed]

Hey BP, I have 250k in equity in my primary residence and want to get in to the rental property game for cash flow. The goal is 10k in passive income via multifamily apartment buildings. I have good credit and have many years of tax returns with six figure plus income. What strategies should I research for my first investment property? Apply for a mortgage, get a HELOC, find a seller financing deal…etc?

[Ellie Perlman]

Hi @Aaron Champion

congrats of your decision to get into the multifamily game! When it comes to MF, credit is not important. It's mainly your net worth (which should be equal to the loan amount), and the property income. I'd stay away from HELOC - the interest rates are higher than other loans, and you don't need to risk your main residence to start investing.

You can start small - 10 or 20 units, with a partner or with several partners. Another way is to invest passively with a syndicator. 

You are welcome to check out my website for information on how to do it. Good luck!