All Forum Posts by: Ryan Mapes

You could also try revenue based financing.  Trade a portion of your future rental income in exchange for cash up front.  You can use the cash as a down payment on a new property or for renovations on an existing property.  Requires that you own other rental properties (funding is based on cash flow of these properties).

Doesn't require a personal guarantee, doesn't add debt, and doesn't take any of your equity.

Happy to chat if you're interested in going this route.  

@Arn Cenedella gave some fantastic advice on the long term financing portion.  I'm happy to chat if you need help coming up with the initial down payment or capital for the renovation component (if your lender won't finance that portion).

@John Smith another option might be to use revenue based financing to cover your down payment. In this scenario, you'd trade a portion of your future rental income in exchange for cash upfront. It doesn't add debt (so you're covered from a DSCR standpoint) and you don't give up equity.

This is usually a great option when you're looking to scale and you need cash for renovations or for a down payment on your next investment property.

Happy to chat if you have questions about how it works.

@Kairio Salgado do you own other investment properties or is this your first one?  If you own others, you might be able to obtain revenue based financing.  Essentially, you trade a portion of your future rental income in exchange for cash upfront.  It doesn't count as debt and you don't give up equity.  

Usually, this makes sense if you need short term funding for renovations or for a down payment to purchase another property.  Happy to chat if you have questions around how it works.

Great insight, @Jared Rine.  Will consider this route.

@Jared Skov I'm by no means an expert on all matters related to 1031 exchanges.  You'll want to speak with somebody who specializes in these types of transactions (there are plenty of folks here on BP).  Also, here's a BP thread discussing single family to multifamily 1031 exchanges...might be helpful.

@Jad Haddad I posted a list of helpful multifamily books/resources in another thread.  Highly recommend these!  https://www.biggerpockets.com/...

@Noelle B. I know you said that you aren't looking to sell.  But, if you change your mind, you might consider using a 1031 exchange to "trade up" to larger properties (e.g. multifamily) while reaping the tax benefits of that type of exchange.  As others have suggested, it's worth revisiting your goals.  Once you move into multifamily investing as a GP/operator, you may find that your two single family homes are more of a burden to manage over time (unless you have solid property management in place already).  Just my two cents... 

 @Temi Oshin Good stuff...I'll check them out!

From the Franklin County Treasurer's website..."Ohio law requires counties to revalue all real property every six years with an update at the three year midpoint."  Here's a quick primer on how taxes work there.

@Saleh Riazi - this might explain what you're running into with back paying taxes for the last couple of years after the property was reassessed.