How to invest, Getting started with only a small amount of DP?

[Nick Ovington]

How do I go about investing when I need to pull equity....not having all of DP. I am eager to get going! Thanks for any help advice for this newbie!

[Jacob Perez]

@Nick Ovington Everyone has a different appetite for investing and cash flow margins. The 1% rule is great if you can find it. But sometimes there are strong investments out there that don't work under this criteria. 

My last deal I bought at $580,000 invested $30,000 in renovation. The rents come out to $5,025 per month with the 4 units. I'm at $610,000 all in on purchase price.

In this scenario my $5,025 / $610,000 doesn't fit the 1% rule. This property is a cash flow monster. Brings in just under $2,000 per month (all utilities are paid by tenants). Most would consider this a strong return. 

The point is this: do a deep diving analysis of the numbers on every deal to see if they make sense for YOU or not.