[quote=SD Realtor]Personally I would feel very uncomfortable borrowing 75k from someone as a downpayment for a rental property. That is very nice of them. However I don’t like the way the numbers run. You have only 10k in cash? You guys make 145k which is awesome but why do you only have 10k in cash? Something is not adding up unless you have large investments somewhere else which is great if you do. Anyways, before I started making more property investments I would build up my cashpile for that rainy day in case something happened to that 145k/yr income flow. Then when I have 6 months to a years worth of savings socked away then perhaps invest. That is just me though and I am very risk averse. If you do wanna make a purchase maybe start small… you can always buy more!! Talk to a lender…[/quote]
I totally agree with this. I didn’t address this point earlier because it would go into too much detail about his personal finances. $10k is a little low to start thinking about investment property. I wouldn’t want to borrow the down payment either. If the money is a gift, then it’s a different story, but I wouldn’t do it with a loan. I would wait till I get enough down payment by myself. Keep that “line of credit” open as a emergency fund if things get tough for a lil while vs depleting it for a down payment. I would start out smaller as well. Maybe $100k-200k, or even sub-$100k.
