Would you rather invest in duplex in CA that breaks even or invest in RE syndication for 2 years that offers you expected 18% annually Example: Duplex in CA costs around $600k, down payment $120k, rent = mortgage payment+real estate tax + insurance (if interest drops by 1%, then expected cash flow could be $200-$300 per month) RE syndication is offering 18%, in 2 years, I can expect to make $43,200 without lifting a finger..The numbers are favoring more towards RE syndication, in the past I have only done rentals never invested in RE syndication.

I had just received a 30k down payment from another owner financed deal and I wanted to get a “second home” and get some additional rental income.

You will run out of money for down payments quickly buying rent ready rentals & the STR income can fluctuate greatly depending on the season / state of the economy.

FINANCIAL CONTRIBUTIONS:1.1 Party 1 Responsibilities:Party 1 shall contribute to the partnership for the down payment, closing costs, and construction costs for renovations and additions.1.2 Party 2 Responsibilities:Party 2 shall independently pay the mortgage until both properties are rented, oversee construction and renovation, manage both rentals, and handle bookkeeping during construction.2.

Here are the details:Bought in 2015Owes - $45kNeeds additional $20-25k as a down payment on the new house for equity.Rate - 6.125% (Adjustable Rate Mortgage) Max is 8%PITI - roughly $700/monthHouse is in great condition so no rehabAsking $175,000, could sell on market for $220-230kRents - $1400-1600How would one structure this deal?

Investors will want lowest down payment and monthly payment possible.

Lower rates can be a double-edged sword.Just some things to think about.

I can see why some lenders wouldn't like it since it would cut them out of a deal, but I would guess this is a very niche market based on downpayment size to make up the difference.

If it costs you $100k on a new property as a down payment to save $400/months is that worth it?

Withdrawing 401K entails a 20% tax cut and 10% penalty fee but I want to use it to being my real estate journey and exit my 8-5 in the next 2 years.