Most people who own one rental never buy a second, and the reason is almost never that they ran out of deals. They ran out of conventional financing.<\/p>\n\n\n\n
Ryan has 121 videos across financing, private lending, seller financing and HELOCs, largely because this is the wall everybody hits. Here is the map.<\/p>\n\n\n\n
The cheapest money available and the most rationed. Lenders cap how many financed properties you can hold, require seasoning, and underwrite you personally. Fine for properties one through four; the constraint shows up right after that.<\/p>\n\n\n\n
Asset-based, fast, expensive. The lender cares about the property and the exit far more than about you, which is exactly why it wins competitive deals. Genuinely useful for acquisition and rehab; genuinely dangerous as long-term debt, because the whole model assumes you refinance out of it.<\/p>\n\n\n\n
What owners misjudge is not the rate, it is the timeline. A hard money loan on a rehab that runs three months long is a different loan than the one you underwrote.<\/p>\n\n\n\n
An individual with capital, lending on terms you negotiate directly. Cheaper than hard money, slower to arrange, and built on a relationship rather than a product. This is how a lot of small portfolios actually scale in a market like Dayton.<\/p>\n\n\n\n
The seller carries the paper. No bank, terms negotiable, and it solves problems nothing else solves. A tired landlord who wants income rather than a lump sum is frequently better off carrying, and will agree to terms no lender would offer.<\/p>\n\n\n\n
In our experience these come from relationships, not listings — which is one reason we ask owners for a buy box<\/a>. The seller-financed deal usually surfaces because somebody already knew what you were looking for.<\/p>\n\n\n\n A HELOC on a property you own turns dead equity into acquisition capital. It is fast and flexible, and it puts a variable-rate lien on an asset you already own — which is precisely why it deserves more thought than it usually gets.<\/p>\n\n\n\n The honest framing: a HELOC is a bridge, not a foundation. Excellent for buying and rehabbing something you intend to refinance. Poor as permanent debt on a long hold.<\/p>\n\n\n\n Every structure above changes your debt service, and debt service is what turns a respectable cap rate into a disappointing cash-on-cash. A deal that works at 20% down and one rate may not work at 25% down and another.<\/p>\n\n\n\n Run it before you commit. The calculator below uses the same formulas as the Ingram Rental Calculator app<\/a>, so the numbers agree wherever you work.<\/p>\n\n\n\nUsing equity you already have<\/h2>\n\n\n\n
What this does to your actual return<\/h2>\n\n\n\n
Ryan on financing<\/h2>\n\n\n\n