All Forum Posts by: Alain Chautard

@Tom S. and @Patti Robertson: Do you know of any investment strategy that would require less than 10% down? For instance, could this work with private money?

Thanks a lot for your answers. This gives me good ideas on where to look next.

@Patti Robertson: What percentage of down payment is usually expected? Is it more than 20%?

I own two properties financed through two personal mortgages overt he past 2 years. I'm now thinking about my third investment, but don't want to make much of a down payment for it. Instead, I think that an owner financed deal would be great. The only thing is: Where to find such opportunities? Is there any database where owners interested in financing would list their property?

Thanks in advance for your insights!

Just to follow up with my original story, I ended up buying a house in Groveland, California, using a conventional mortgage. The cabin is now a fairly successful AirBnb and my wife and I are glad we made that move! We even became AirBnb superhosts in just 3 months!

Now we're thinking about our next investment, basically looking for opportunities, either for AirBnb or regular rentals (considering condos / duplexes right now)

Thanks a lot everyone for your insights. I'm basically giving up the LLC idea and now considering to put my excellent credit to use for a mortgage thanks to the advice from you all.

@Jonathan Pflueger Thanks, very good points. As far as AirBnb regulations go, my eye is on places where vacation rentals are the norm, and as a result AirBnbs are already there and welcome. I can also get AirBnb occupancy data, average revenue per property, etc. for these areas to make it a low-risk investment. So I know there's a lot of them there and that they're making good money.

@Gordon Cuffe Thanks for the advice. Good to know! I'm looking for vacation rental properties in the Sierra (Yosemite or Tahoe areas) rather than Sacramento.

@Aaron K. The idea is that if I get more properties in the future, selling them as bundle in a LLC seems like an interesting exit strategy. I would also think that buying property #2 is easier if property #1 is an asset of the LLC.

But the main idea is I don't want to impact my own credit score for business purposes.

@Jack Martin The thing is I'm biased because of the industry I work in (IT). I've listened to a few podcasts and when I see people buying dozens of properties to cash out only $100-$300 per month out of each, I feel like it's not worth the hassle / risk because I can make that kind of money in two hours with my job as a consultant.

So I'm more considering AirBnb rentals with 10+ % of cash-on-cash. If I can get $1000+ per month out of one property, then I would feel like it's a good investment. Anything below that, I'd rather put my money into Fundrise :-)

Thanks Jo-Ann. I'll be in touch soon.