Thinking about getting a rental property...

My first one was a five unit commercial building in 2003 before they started over regulating it. I got it no money down. The seller held a second mortgage for the down payment. That building is worth almost half million now. I have tons of equity in it so I have a line of credit that I use to buy new properties without a loan. I fix it up and then get a loan which covers 100% of my costs and I pay back my equity loan and repeat.

All that sounds good, but it's still a struggle day to day. I can see the light at the end of the tunnel though as some properties are getting paid off. I not taking a penny from it yet, but it will be much better than any IRA when I decide to.
 
Another very successful strategy is to find folks like the ones that have posted here that will "never" own a rental again and convince them that owner financing is a good deal for both of you (which it is). There are tons of deals out there like this, especially if you can spell out to someone who is unfamiliar all of the upsides.
To add to what Ron is saying I believe now the limit that Fannie Mae Freddie Mac will allow on backed mortgages is 4, so that is a tough route to go. Once you get real equity in a few then credit unions and others are a lot more willing to deal with you as an investor.
 
Fannie and Freddie both allow 10.
But it requires manual underwriting, per my credit union.
At 10...it's cash, hard money or no money.
 
Back
Top