961: Seeing Greene: How to Avoid High Down Payments and When to BRRRR vs. Buy New
One of the biggest hurdles to rental property investing? High down payments. Most lenders want you to come to the table with twenty to thirty percent down, but with home prices averaging around $400,000, it might not be easy to come up with $80,000 to $120,000 on your next deal, especially with today’s high cost of living. So, how do you skirt the high down payment requirements while still locking up solid real estate deals? We’re showing you how in today’s Seeing Greene!
First, a Hawaii investor struggles to scale his real estate portfolio with the state’s significant down payment requirements. David and Rob give him some creative ways to still get deals done. A median-income-earning new investor wants to know whether to buy a new construction home or BRRRR his way to wealth. Then, we debate whether a high down payment with cash flow beats a low down payment with negative cash flow. Looking for a better interest rate on your next deal? We’ll share the seller finance strategies you can use to buy off-market properties, plus whether or not you can buy two houses at once with the same preapproval.
Want to ask David a question? If so, submit your question here so David can answer it on the next episode of Seeing Greene. Hop on the BiggerPockets forums and ask other investors their take, or follow David on Instagram to see when he’s going live so you can jump on a live Q&A and get your question answered on the spot!
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In This Episode We Cover
How to get around high down payment requirements on your next deal
BRRRRing (buy, rehab, rent, refinance, repeat) vs. buying new build homes
Weighing the pros and cons of a high down payment with higher cash flow
The ONLY type of investor who should purchase negative cash flow properties
Seller financing 101 and how to find these hidden deals with rock-bottom rates
Buying two houses with the same preapproval and whether it’s even possible
And So Much More!
(00:00) Intro
(01:07) How to Avoid High Down Payments
(11:36) BRRRR or Buy a New Build?
(20:35) Take Negative Cash Flow?
(24:50) Comment Section Callout
(27:36) Getting Seller Finance Deals
(34:24) Buying Two Houses at Once?
(36:53) Ask Us Your Question!
Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/real-estate-961
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