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Updated over 11 years ago,
FIrst-Time Financing Question
OK so looking to go ahead soon with my first residential property acquisition.
Going after a buy-and-hold strategy here.
A) I won't be qualifying for a bank loan until I can get 2 years income on the books.
B) Owner finance seems to be less-than-popular in my area.
So...
C) I'm looking to put $20-30K into paying cash for a foreclosure in a poor neighborhood.
I've been renting other peoples' properties successfully in a niche market for the past several years, so I know that with what I'm doing I can get that invested $25K back in, let's say, 2 years safely.
But it feels weird putting all cash into a deal, as opposed to leveraging.
I'd like to following Kiyosaki's principle of power investing: invest for cashflow, put as little down as possible, and get invested money back asap.
Given my situation.....am I on the right track here in paying cash for a heavily-discounted property as opposed to pursuing leverage since leverage doesn't seem to be available given my location preference and situation?
Would simply like to take the quickest investing route possible, and get any invested money back asap so I could move on to the next deal.
Or am I not seeing something here?
Any suggestions?