All Forum Posts by: Z Smith

Hi there. My name is Zach and I am a new investor located in Louisville, Kentucky. I'm searching for SFHs in the Louisville area, and would love to connect with a n00b like myself, or even someone with more experience that may be able to share some insights. Let's meet!

Hi there. I want to purchase my first SFH to rent. Purchase price will be around $100k. I'll receive at least $1k month in rent. I am 30 y/o. I work from home full time.

I am having a lot of issues trying to work with banks for a loan and find they slow the process down considerably. I am wondering if using my own money to purchase the first home would not be a good idea. 

I have over $100k in personal cash I could use for a deal. My thinking would be that I could purchase my first rental and have 100% equity, and then use this as leverage to receive a bank loan for another $100k house about 6-12 months later; all the while any rental income less expenses can be put into a savings account to be used for a next deal 6-12 months out - and repeat this process until I can get to 10+ SFHs.

I welcome the conversation on this topic from this community. I know some people would say never use personal cash, but since this is my first deal it may set me up to receive loans easier in the future while making more money on the first deal to help pay for more purchases.

My second option would be to use my personal home as collatorel but that scares me frankly. While I was lucky enough to pay my mortgage on the home off in 2014, leaving me with a $200k asset to borrow on, I am just not sure if it is needed for my first (or second or third...) deal.

I appreciate your thoughts...

Hey I am waiting on BP to allow me to edit my profile location to be what it should be :) Says I've changed it more than once today so just waiting on that...

Hi Michael,

Thanks for the response. I have lived in Louisville all of my life and since we have a home here currently we think this would be a good spot so that we can be close by to our properties. The Sedona property will be a vacation rental since we go there each year in the winter, and can rent it out the rest of the year or resell.

Thanks Mya!

Hi all, I am a REI noobie coming into the space at the age of 28. I have just registered for the site after silently watching and reading posts in the BP archive. I am working towards owning landlord single family homes in the Louisville KY and Sedona AZ areas. I will be posting questions related to financing and execution, as well as general business questions, on the BP forum throughout the upcoming weeks.

Next step will be to download the suggested BP ebook to catch up! I welcome any connections in this new space :)