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! Support today's show sponsor, Rent to Retirement, by checking out their turnkey rental properties for sale!

Episode 961 of the BiggerPockets Real Estate Podcast podcast, hosted by BiggerPockets, titled "961: Seeing Greene: How to Avoid High Down Payments and When to BRRRR vs. Buy New" was published on May 28, 2024 and runs 41 minutes.

May 28, 2024 ·41m · BiggerPockets Real Estate Podcast

Summary

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!  Support today's show sponsor, Rent to Retirement, by checking out their turnkey rental properties for sale! 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 Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email [email protected]. Learn more about your ad choices. Visit megaphone.fm/adchoices

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