@Ashley Keeler
I closed 4 brrrrs in my first year by using cash, helocs and Blocs. My bank offers a cool loan product and suggested I start using it to speed my process up. They are a small local bank that specializes in commercial (properties held inside an entity) lending. This is what they suggested to me. I can purchase a property with 20% down of purchase price, they will also finance the renovations (like a construction loan), interest only upfront and after the house has a lease, they will modify the loan to 75% of ARV with no seasoning period. So, they're basically telling me that my sweat equity will cover the down payment as long as I keep my all in cost under 75%. They do want to see a lease in place and they ask that I am honest and not pull out cash that I didn't put in. So if I am all in for 55% of the ARV they want me to put them in a good position on the property. I am personally signing for these loans and they let the income of the property offset the DTI hurdle. At the end when I refinance out they're cool with me getting my initial 20% down payment back to keep moving forward.
So in my position I am planning on doing this with my lines of credit, but instead of paying all cash upfront, I am going to pay 20% down so I can do 3-4 properties simultaneously and scale much faster. I do respect the comments earlier about doing 1 at a time until you have experience. As it will minimize the sting when you make mistakes. I am a class A contractor and still make mistakes that cost 1000s.
I have an extremely good relationship with this bank. Find a small local bank that you can do this with. If you have $140k and buying properties for $30-40k you can buy a lot of houses with that 140k at 20% down if you can find a lender with this type product.
