Decide 2 things. One much money is needed to close the deal. Where is the money coming from?
Initial Investment Amount
What expenses do we need to consider in order to close on a property? We are going to assume the following
- We are not able to use a FHA loan (we are buying out of state)
- We are not able to use a VA loan (we are not a military family)
- We are going to assume 20% down will get us financing
Here are ways we can come up with the initial investment
- Save parts of our paycheck, bonus, etc.
- Cash-out refinance
- Partner with others looking to buy rentals
- Create and fund an IRA to buy and hold rentals
- Wholesale properties to fund rentals
- Create more cash-flowing assets that allow us to fund deals