All Forum Posts by: Melissa Hostetter

Going further with this chain of questioning...

We are planning to buy our first rental property strictly through a conventional mortgage with 20% down.  We are not eligible for any of the loans mentioned above (as far as I know).  We plan to remain in our own primary residence, we are not veterans, not rural, etc...  So, I guess my question is how to take the cash flow we will receive from our first property (300-400/mo) and turn that into our next downpayment.  I would love to purchase a multi-unit property but have no idea how we will save the 25% down required for a conventional mortgage.  Thoughts?  Thanks!!

Thank you @Ozzy Sirimsi and @Michael Kretch.  I appreciate your insight.

Hello!  My name is Melissa and I live in Central Illinois.  My husband and I are considering purchasing our first rental property.  However, we are looking in the very low range- $20-30K.  I am a former social worker and I have a pretty good idea of who rents these properties.  That being said, we only have $6K for our 20% downpayment and it would take several years to save for a higher-range property.  Many of the properties we are looking at are currently rented in the $575-$650 range.  That would leave us around $350-400 in cash flow each month.  Our goal would be to purchase another property in the next year and a half- same price range.  

Of course, our main concern is that this would turn into a bigger headache than it is worth.  Thoughts?  Thank you so much!!

Melissa